Life company Partnership Assurance has warned that advisers are missing a huge business opportunity.
It estimates that over £2.3bn a year is spent by individuals on long term care, with only a tiny proportion being funded through financial products.
It says that as people are living longer and one in three will need care, and with the financial burden likely to continue to shift from public to private funding. it is calling on advisers to consider how they can offer a care service to their elderly clients and simultaneously creating a business opportunity for themselves.
Partnership says that alongside IHT planning and equity release, they should consider the potential care requirements, considering both investment and annuity backed care.
Managing director Steve Groves says: “The Commission for Social Care report highlights how, as people live longer, so they need financial advice well beyond the age of 65. Many families are financing their relatives’ care costs, which typically run at between £25,000 and £30,000 per year, from their own pockets or from the sale of a property.
“A failure to take financial advice often means that the assets are not used in the best way and that there is a very real risk of funds being exhausted, whilst the care is still required.”