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Homeowners Reluctant To Sell To Cover Care Costs

Most people want to exclude their main home from the assets they may be required to sell to fund care costs for themselves or loved ones.

Research from Aegon found that 57% of people were unwilling to sell the family home to pay for care costs, while 68% agree the state should pick up some of the bill.

Some 64% also called on government to introduce a cap on the total amount individuals may need to pay towards social care, as it prepares to publish a green paper on the subject.

The green paper will attempt to determine how much people are willing to pay towards care and how far remaining assets needs to depreciate before the state contributes.

Respondents were most willing to dip into their pension (32%) to fund social care, a view which was endorsed by Aegon.

Steven Cameron, pensions director at Aegon, said:

“People are very 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.

“Pensions are the most popular option for paying for care and they’re well suited to the task.

“We’d encourage the government to think about offering people incentives to ring-fence part of their pension for later life to pay for care should they need it.”

For any help or advice with financial planning talk to RPD


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