Home & Capital welcomes the Government’s call for an elderly care consultation and says an ageing population combined with an increased proportion of wealth locked up in property mean equity release is a prime option.
Home & Capital says by 2031, there will be more than 20m people over the age of 60 in Britain and rising age dependency ratios mean it is increasingly difficult for working families to support elderly relatives’ LTC needs.
It says equity release should be a fundamental part of the overall strategy of reforming social care and is calling on the Government to design a scheme to release value from property to fund social care.
Home & Capital business development director Simon Little says: “The UK’s ageing population means a growing number of elderly people will require care in the future. But many people’s financial provision in retirement is inadequate – not helped by the end of final salary pension schemes for example – and paying for care is already becoming a struggle.
“Some older people are facing the added distress of being forced to sell their homes to cover the rising costs of such care. Clearly this is not an acceptable situation for those who wish to remain in the homes they have worked a lifetime to buy. Equity release offers a solution whereby elderly homeowners – many of whom are reluctant to seek financial support from family – can stay in their own homes and, where required, use the equity in their properties to cover the costs of care.”