On Tuesday, health minister Andy Burnham launched the Health Department’s Green Paper into long-term elderly healthcare reforms. It proposes three options. The first is a partnership service, where the state funds a proportion of the cost and the individual funds the rest.
The second would be a voluntary insurance scheme, where people invest in a scheme before they go into care, supported by state funding. The third option would be a possible compulsory model, with people over 65 contributing to a scheme.
Symponia joint managing director Janet Davies says: “The proposals mean people will need to make up the difference using investments, pensions or equity release.”
Better Retirement managing director Tim Eadon says: “There is a lot of potential for IFAs.”
Partnership Assurance chairman Ian Owen says: “People need to be encouraged to make as much provision for their old age as possible and then when they are in retirement, the industry must continue to provide advice, support and products.”