UK not prepared to handle social care costs says research

By Michael Klimes

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Oct 31, 2018
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There is a worrying level of uncertainty among adults when it comes to saving for professional care for their parents in later life, according to research.

A study conducted online by YouGov for Quilter Cheviot Investment Management surveyed 1,525 UK consumers aged 18 or over with a minimum of £100,000 of investable assets and living parents.

It finds 61 per cent of adults either do not think their parents will need to spend time in a care home or do not know if their parents will need to.

The study also shows an alarming gap between what people expect to pay for social care and how much it actually costs.

Just over a quarter (27 per cent) of respondents believe the average cost to be between £1,000-2,000 a month.

Twenty four per cent believe it is between £2,000-3,000 a month while 19 per cent estimate it to cost between £3,000-4,000 a month.

According to Which? research, in 2016-2017 the average weekly cost of a room in a residential home in the UK was £606 or £2,424 a month while a room in a nursing home cost £802 a week or £3,208 a month.

Quilter Cheviot client services director Pamela Reid says: “This news comes ahead of the government’s green paper on social care which we hope will provide clarity on the care funding options available to the wider society.

“As bespoke wealth managers, we have a unique perspective on how to help people structure their investments and plan for a number of scenarios in later life.

“This can include plans that address the possibility of having to fund the cost of a residential care home.

“It is not an easy conversation to have with family members but one that is crucial to ensure they have best standard of care and quality of life in good and ill health.”

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