Twenty-nine per cent of over-55s are planning to use their property wealth compared to just 19% a year ago, a new report from Key has revealed.

The report from the over-55s specialist adviser’s, titled Tackling the Care Question, suggested the shift reflects that property wealth is growing in importance for funding care in later life, as faith in savings and pension income falls.

Key also stated that this is reflected in a similar downturn in confidence in being able to fund care from savings and investments or pension incomes partly driven by historic lows in interest rates, and continuing stock market volatility.  The report highlighted that just 34% of over-55s (44% in 2019) believe their savings and investments will help fund care, while 30% (40% in 2019) say they will use pension income.
 
The study, based on findings from 1,011 UK adults above the age of 55, also indicated that over-55s overwhelmingly want to receive care in their own property – with three-quarters (75%) planning to either stay in their current home or move to a more manageable property. Just 4% said they would prefer to move to a care home.
 
“When you speak to people, you find that the vast majority are keen to receive care and support in the comfort of their own home but struggle to know how, or how best, they might meet these costs,” Key CEO, Will Hale, commented.

“With the recent economic turmoil, confidence in savings and pension income has fallen while more people are looking to the value tied up in bricks and mortar to finance care.  Getting good advice and understanding what resources you have to draw on is important – and making sure you factor these potential costs into your retirement planning is vital.”

Key’s research found that a quarter of people either don’t know how they would meet their care costs (15%) or wouldn’t be able to meet the costs (10%).

One in 12 (8%) also said they would have to sell any valuables they have to fund their care in 2020 – up three percentage points compared to 2019 (5%).
 
“At the same time as councils are under pressure, over-55s are waking up to the reality that they may well need to pay for all or some of their care in later life,” Hale continued. “This has created the perfect storm and it is vital that the Government focuses on setting out clear plans for reaching a cross-party consensus on social care, and consider long-term reform and funding of the care system.”

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