Partnership has written to Aifa members warning that long-term care will remain costly under Andrew Dilnot’s reform proposals.
Oxford economist Dilnot published his final recommendations for long-term care reform earlier this month.
These included implementing a cap on the costs of long-term care borne by individuals of between £35,000 and £50,000 and an increase to the threshold of assets that people can hold and still get means-tested Government help from £23,250 to around £100,000.
However, Partnership warns IFAs that because accommodation costs are not included in Dilnot’s recommendations, long-term care will remain costly.
Partnership director of corporate communications Jim Boyd says: “There is a danger that because Dilnot has tabled his proposals, people will stop thinking about long-term care.
“But the potential value of financial advice in this area is clear. An individual with care costs of £1,000 a week will pay £208,000 under the current system if they live for four years, the average life expectancy of one of our care annuity customers. Under the new system, they would still pay £161,200 over the four years.
“Also, the Dilnot proposals will not be introduced until 2013 at the earliest. People going into care now need financial advice immediately if they are not to lose significant amounts of capital and income.”
Informed Choice managing director Martin Bamford says: “Even with Dilnot’s proposals, care is still going to be incredibly expensive, particularly in the South-east of England.”