Three quarters (75%) of people in the UK aged 45 and over are not putting any money aside for their elderly care, while one in 10 (9%) are saving less than £50 a month, according to new research.
The study by SuperCarers, a service that matches families with caregivers, also found that 42% of people aged 45 and over believe they will be able to cover the cost of their elderly care with personal savings. A further 34% think the state will pay, despite the fact that the cap on when an individual’s care costs can be supported by the state currently stands at £23,250.
A further 33% of respondents indicated that they will fund their elderly care using equity from their homes, while 17% said they don’t anticipate needing elderly care and 13% stating they don’t know where the necessary funds would come from.
When it comes to the biggest concerns people have about getting old, 66% cited poor health; 55%not being very mobile; 45% not having enough money to do what they want; and 44% feeling lonely.
One in ten (10%) people believe they will be a burden on their children as they get older.
Adam Pike, CEO and Co-Founder of SuperCarers, said: “Considering the impact of growing old is often put off until it is too late and even though our research highlights there are clear concerns for health in later life, it seems that preparing financially for future care requirements isn’t as high up on the agenda as it should be.”
For the study, the views of more than 1,000 individuals aged 45 and over were canvassed.
Two million elderly people in the UK currently have a care-related need and it’s estimated that four million will need daily help by 2029. Moreover, by 2025, it is estimated that there will be a deficit of 600,000 carers in spite of this increasing demand.
There will also be a financial homecare deficit of £513m across the UK during 2016/17, according to a recently published report by the UK Homecare Association (UKHCA).
The report claims that widespread and systematic underfunding of homecare services is putting the wellbeing of older people at risk. As a result, avoidable pressure is being placed on hospitals and community-based healthcare services.
People are playing a postcode lottery when it comes to the prices individual councils are willing to pay for essential care services, even within the same region.
As the statutory National Living Wage increases from £7.20 per hour today to approximately £9 per hour by 2018-2019, Homecare providers’ costs are expected to rise; especially as many need to pay considerably higher than the National Living Wage to secure recruits with the right skills, abilities and experience.
Colin Angel, policy director at UKHCA, said councils that decide to pay inadequate rates for homecare are taking major risks with people’s health and wellbeing, and the jobs of local people who provide care.
“We have already seen evidence of homecare providers leaving the state-funded care market, or closing their doors for good because they cannot afford to remain in business,” he said.
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