Most people do not budget for future Care
The majority of people aged over 55 have not budgeted for their future care needs but have spent money from their pension pot early, research reveals.
A Citizens Advice poll British people aged over 55 who had taken money early from their pensions, found that only one in six are budgeting for future care costs.
84 per cent have no plan when it comes to the care costs they may face as they grow older and 60 per cent said they had not even thought about how they would pay for their care.
Currently, around four million older people have care needs which include help in the home or care in a residential or nursing home. Almost two million people aged over 65 in England have care needs.
Gillian Guy, chief executive of Citizens Advice said: “Care costs can be a heavy financial burden that many people are unprepared for.
“It is unsurprising that many people in their fifties are not thinking about how they will pay for care costs when the need for this could be 10, 20 or even 30 years away. But this issue does need some attention, otherwise people risk dipping into their pension now only to find they need some of the money later."
The annual cost of a care home increased by £1,536 between 2015 and 2016, according to Prestige Nursing + Care.
Costs for an average single room in a UK (non-nursing) care home have risen by 5.2 per cent to £30,926.
With 1 in 3 people over 60 needing to enter a care Home at some stage in their life, planning for this high risk is a sensible move by them and their families.