Speaking at the Money Marketing Retirement Planning Invitational in London last week, IPS Partnership business development director Richard Mattison said that while there has been some increase in business following the rule change at the beginning of October, it has not led to the expected big increase.
“It has not panned out as expected. People are being cautious about moving money around at the mom-ent,” he said.
Also speaking at the event last week, Life Trust national accounts director Marcus Henderson said he believed that advisers needed to do more to educate clients on the implications of increased longevity.
While doctors talk of improvements and advancements in medicine, Henderson said that advisers must emphasise that while people are living longer, over a quarter of retirees ending up in long-term care.
He said that life expectancy in the UK is currently increasing every five hours and predicted that in the next 40 years, weekly care home fees will dramatically increase to around £8,000 from the current average levels of £600 a week.
He said it was unlikely the Government will be a prime provider of support for the elderly in the future and people must be prepared to be self-sufficient.