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CPD: Protection

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes that took place during May 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity. Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

June CPD Newsbrief — Protection

Protection

IFoA urges pensions ring fence to fund care

Steve Tolley

The Institute and Faculty of Actuaries (IFoA) wants the government to introduce a pension-style savings vehicle to encourage people to save to cover the cost of long-term care.

In a new report, the IFoA suggests a new “pension care fund”, a savings pot that would run alongside defined-contribution pension schemes. Pension contributions would still be tax free, and any monies not spent on care can be passed on free of inheritance tax to fund the care of a spouse or beneficiary.

The Care Bill proposes capping local authority care costs for those over state retirement age at £72,000. The cap is due in April 2016, but will not cover daily living costs or accommodation costs, which are more than local authorities would usually pay, known as top-up fees.

IFoA’s report estimates one in 12 men and one in six women aged 85 today will reach the cap. It says on average people can expect to have spent around £140,000 before they reach the cap, and that if they are in care for 10 years the cost could rise to £250,000.

It is hoped the cap will make it easier for insurers to design long-term care products. But in February care minister Norman Lamb said insurers had told government there needs to be regulatory changes before they would look to launch new products.

June Newsbrief

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes that took place during May 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity.

Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

Not yet registered? Join for free today at www.ifacpd.com and access more than 35 hours of independent, accredited CPD learning content. 

Learning objectives (full list of ApEx standards covered below)

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