The cost of care in later life and its funding is a cause of concern for over half of the UK’s retirees. That is according to new research by retirement specialists, Age Partnership.
The whitepaper, entitled Is the UK Retirement Ready?, revealed that 57 per cent of retirees were concerned about funding their care in old age.
Questioning whether the UK was ready to retire, the study involved adults from across the age spectrum and found that despite the concerns, 85 per cent were yet to include the cost of care as part of their retirement plans. Ninety per cent of those were already retired.
The whitepaper went on to say that the state pension was not enough for pensioners with no other source of income to exist on. With the average weekly requirement for a retiree being £208, the £125.95 basic state pension leaves a shortfall of around £4267 over the course of a year. That was before the cost of care was factored in.
The study highlighted that an average of 68 per cent said they would be, or already were, relying on their State Pension to get them through retirement. Even more concerning was the fact that 20 per cent said they did not know how they would fund retirement.
Out of the retirees who took part in the study, 58 per cent said that they regretted the fact that better advice was not available when they were younger.
Meanwhile, a separate study by the Financial Conduct Authority (FCA) had better news, with only 26 per cent of its respondents in the 45 – 54 age group expecting the State Pension to be their main source of income.
MFG Solicitors’ Private Client team can assist in any matters relating to care home fees or the cost of care. Our experts also advise on any other corresponding aspects of law. For more information, contact us today.