Speaking ahead of the Department of Health’s imminent green paper into long-term care for the elderly, Ship director general Andrea Rozario says people will have to sit up and take notice of equity release as it becomes a more important source of funding for the UK’s ageing demographic.
The comments follow news that the Government may be planning to introduce a £12,000 levy on inheritance to help fund old-age care.
She says: “We will have to wait and see but this green paper must recognise that the bulk of people’s money is tied up in bricks and mortar.
“The changing long-term care market will have a dramatic impact on people’s acceptance and understanding of equity release. If the Government pinpoints equity release as a solution next month, this will drive the sector forward.”
Rozario adds: “We are going to need more care in old age and we will have to plug the funding gap. This system was not designed to cope with people getting as old as they are becoming. It is inevitable we will have to look at alternatives like equity release.”