Everyone agrees the cost of care for the elderly is expensive – but no one seems to agree on how much they should pay towards the cost of their care.
The government is about to publish a green paper outlining some proposals for discussion about social care.
As part of the debate, pension provider and insurance firm Aegon has released some research that shows most people believe the elderly should contribute towards their care – but no one can say for sure how much.
The study shows 57% of people do not want their home included as an asset when calculating their care contribution. Another 20% are unsure if this is a good idea.
Cash dilemma
The dilemma here is the elderly want to protect their wealth to pass on to their loved ones, but those same loved ones could be footing the bill for long term care.
But two out of three people agree they should pay towards their care.
And a similar number agree the final care bill should be capped.
Only 8% considered individuals should pay for their own care until their money ran out, while one in four thought the government should fund care for the elderly from income tax.
When asked how to fund their care bills, one in three felt from pension savings was the best option.
“While there’s widespread agreement on the need for a deal between individuals and the state on a system where both contribute to care costs, the detail on how much individuals should pay is fraught with political difficulties,” said Steve Cameron, Aegon’s pensions director.
Dementia tax
“Funding social care raises many questions of fairness across the generations, so the fact that there’s support for sharing costs across age groups will be welcomed by government.
“Our research indicates strong support for a cap on the amount people will be expected to pay. This will allow people to plan while also protecting inheritance aspirations.
“But after the government’s pre-election proposals were heavily criticised as a dementia tax, the more controversial question is how low a floor will an individual’s assets need to fall to before the state picks up the full costs of care.
“Will the value of an individual’s home be counted when assessing eligibility for government support? Our surveys repeatedly show people are reluctant to sell their homes to pay for care. But given so much of many people’s wealth is tied up in property, it’s hard to overlook it.”
