Ahead of Pension Awareness Day, new research from Fidelity International highlights the current lack of preparedness amongst the UK’s working population on how they will pay for the cost of care. The research also works to show how this is causing people to resort to relying on state provisions or their workplace pensions alone.
Research from Fidelity’s Modern Life Report found:
- A quarter (25%) of those surveyed haven’t thought at all about how they will fund long-term care.
- 24% believe they will rely on state provision, 27% say they will use their life savings, while 23% simply don’t know.
- Over a quarter (26%) of those in their 50s haven’t thought how they will pay for long-term care.
- 20% of those in their 60s don’t know how they will meet their own future care costs
- 25% of those in their 70s don’t know how they will meet their own future care costs
- 29% of those in their 70s believe that they will be relying on state provision to fund the cost of their care into old age
Emma-Lou Montgomery, associate director for personal investing at Fidelity International, said: “Health, wealth and happiness has long been the prescribed recipe for a good life. But as we know all too well, the growing cost of care can have a knock-on-effect on our finances.
“When it comes to health, we aren’t always in control of what happens, and while we are living longer and spending more years in good health, the number of years we live in poor health has also increased. With a longer time spent in retirement than ever before, its important to make sure that while you are in full time work you are contributing as much as possible into your pension to remain financially secure throughout your lifetime.
“While the government is committed to solving the social care crisis it won’t happen overnight – there is no easy fix. As we await further clarity from the new prime minister people must take their future into their own hands and ensure they are fully prepared for life’s twists and turns. While our own mortality or possible ill health is something few of us like to dwell on, taking financial steps to plan for your own care in later life is essential.”
Please find the full Modern Life Report Here: https://www.fidelity.co.uk/modernlifemoments/