Over a quarter (28%) of the baby boomer generation have said that they have not ring-fenced money to fund any care they may need and still leave their family some inheritance, Charles Stanley has found.

A survey by the wealth manager, which polled over 1,000 high net worth (HNW) individuals across the UK, revealed that more than a third (34%) of baby boomer respondents will rely on the sale of their property in order to find the funds they need for care.

This figure rose among younger generations, with 42% of both gen z and millennial respondents saying they’ll rely on the sale of property to fund care.

Charles Stanley said that residential care home costs currently total £56,000 per year.

The research also found that over two in five (43%) millennials surveyed agreed that any care they need will be funded by their spouse, compared to just over a quarter (26%) of baby boomers feel the same.

Similarly, gen z (43%) were much more likely than baby boomers (12%) to acknowledge they will need financial support from their children in later life.

Charles Stanley added that despite the significant costs that may be needed for later life and the reliance on family to support them, half (50%) of HNW individuals have not discussed the topic of later life and long-term care with their families, rising to 57% of baby boomers.

Director of financial planning at Charles Stanley, Harry Bell, said: "From a financial planning perspective, our research raises the alarm bells for a few reasons. With an ageing population and a soaring demand for later life care, families risk having to make serious compromises in order to pay for unexpected long-term care costs. Later life care is a family matter, and our research makes it clear that difficult conversations are not happening nearly as much nor as early as they need to.

"Although we all hope for long-term independence in retirement, it’s vital to have the right plans in place to account for any eventuality. There is a delicate balancing act to be performed between gifting, spending and leaving enough funds for care - something a financial planner is best placed to assist with. A discussion with a financial adviser can go a long way to giving an idea of how best to set aside capital for use in later life and create contingency plans best suited for each individual."

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