Long-term care costs to hit £33,000 per year
The annual cost of long-term care will rise by 27% to £33,000 per person by 2025, up from £26,000 today, a new survey by LV= reveals.
Over the next 13 years, 37% more people will need long-term care - due to a combination of women working later in life, families living further apart and rising life expectancy.
Alarmingly, 46% of those surveyed had not thought about how to fund their care. Meanwhile, 23% said they will have to use their property, 22% will rely on savings and 19% on their salary.
At present, anyone with assets worth more than £23,250 is not eligible for government support. But the LV= survey shows that the average wealth of over 55s in the UK - including assets such as investments, savings and property after mortgage - is £32,500, meaning many people will be forced to fund their care on their own.
"The UK is facing an uncertain future on the funding of long-term care. Low interest rates and living costs continually on the up, coupled with social care budgets being cut, creates a worrying financial backdrop for many, especially those in retirement," says Vanessa Owen, spokesperson for LV=.
"With our report highlighting that the cost of care looks set to increase by 27% in real terms by 2025, people need to make sure they have thought about the possibility of paying for care, either for themselves or loved ones, and how it would be funded," she adds.