Care Costs Advice – where to go?
Financial advisers and the Internet are the fastest growing avenues for those seeking advice about the costs of elderly care says a recent report.
Stephen Pett, of Legacy Trusts says “It is frightening to note from this report that almost nine in ten people seek care costs advice from people who are very restricted in the advice they can give. Make no mistake, holistic financial planning advice taken very early is key to successful care fee planning and leaving something behind for future generations – or not.”
The finding comes from leading care annuity provider Partnership, whose second annual care index compares attitudes towards the cost of long term care across the UK year on year.
The 2012 care index suggested that only 7% per cent of people would seek advice from an IFA and 3% would turn to the Internet as their primary source of information. However, the 2013 survey has shown an increase, with 15% of respondents now claiming they would seek advice from an IFA and 22% would use the Internet.
If you needed to go into residential long-term care, where would you go for advice on how to fund the cost of it?
The findings also suggest that local authorities are now the most likely place for people to turn to for advice on funding their long term care which could be a big opportunity for financial advisers. The Government’s recent proposals to reform the social care system in England include a duty on local authorities to provide information and advice to everyone, including self-funders.
As part of this duty, Partnership has been campaigning for local authorities to refer self-funders to regulated financial advice to ensure that they are aware of all available options to fund their care needs and minimise the risk of depleting their assets.
Chris Horlick, Managing Director of Care, at Partnership, said; “57% of people in the Care system are funding some or all of their care costs, yet this research shows that only 15% would consider contacting an Independent Financial Adviser.”
“While it is encouraging that over the last year there has been an 8% growth in awareness about IFAs being best placed to offer advice on long-term care funding, people are still seeking advice from other arguably less holistic sources”
“This lack of awareness among consumers about where they can go to get appropriately qualified financial advice is worrying as it means that they might purchase the wrong financial product to fund their care fees or none at all. With an estimated 25% of all self-funders running out of money and falling back on the state, this has significant implications for both consumers and the Government.”
Care costs advice