View more on these topics

Audit report will warn public not to bet on free LTC

An independent report from the Audit Commission will highlight the need

for IFAs to warn clients not to gamble on the state providing free

long-term care.

The report, published this week, shows that individuals can end up paying

the same for state care as they would for private care.

Long-term care insurers say the report is a classic example of the

confusion surrounding the issue and means IFAs need to encourage clients to

consider LTC insurance seriously.

The commission&#39s report also shows that local authorities are relying

increasingly on individuals paying to provide “home care” – services such

as shopping and cleaning – plus help with the activities of daily living

such as washing and dressing.

Charges accounted for 12 per cent of home care costs in 1999, up from 8

per cent in 1993.

PPP Lifetime Care advertising and PR manager Paul Bennett says: “There is

a strong IFA message in the report. It forces people to confront the fact

they will have to pay for care even if they believe they won&#39t.”

CGU long-term care strategy manager Sandy Johnstone says: “This highlights

that IFAs need to be conscious that the concept of &#39state help&#39 does not

mean &#39free help&#39. It is a classic demonstration of the confusion

surrounding the issue and how this makes financial planning difficult.

“Even if a client suggests they do not have to worry, IFAs need to be

aware that care might not be free. We welcome a resolution of the issue in

the Government&#39s comprehensive spending review this summer.”

Recommended

Dunbar steps up drive to recruit network IFAs

Allied Dunbar is appointing a new sales director of its franchise networkas part of its bid to woo network members to its franchise operation.Andy Ferns is taking over from chief executive Keith Baldwin, who has alsobeen sales director for 10 years.Dunbar says it is still on a recruitment drive to attract network membersand sole traders […]

Sipps can cut ties that bind drawdown

This year&#39s Finance Bill promisesa welcome simplification oftheincome-drawdown regime but accompanying proposals carry a nasty stingthat could restrict invest-ment freedom.The first proposal, contained in the bill, is a simplification of theadministrative procedures. In effect, this means that triennial reviews ofphased income drawdown can be done on one specific valuation date and thatsuch reviews can be […]

Chips are down as Intel tumbles

US unit trusts were left reeling last week as two of the most popularhardware technology stocks took a tumble.Cisco Systems&#39 share price fell by 7 per cent on Wednesday while Intelfell by almost 10 per cent after recalling one million faulty motherboards.The falls highlighted the volatility across the US tech market and came asa shockto […]

Direct Life secures backing in bid to lead term market

Direct Life and Pensions has secured seven-figure backing in its ambitiousbid to become the market leader in the term insurance broking market.The cash has been put up by Lloyds TSB Development Capital.The IFA, which provides low-cost life insurance over the internet andtelephone, is set to recruit 60 new staff in its drive to be the […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment