Experts are warning the Government’s pension reforms have “major implications” for the lifetime cap on care costs.
The Care Bill is proposing a £72,000 cap on care costs from April 2016.
It will be available only to those with assets of less than £118,000, excluding property.
Experts are concerned savers who take large parts of their pension pots in cash could move above the means test and not qualify for the cap.
Society of Later Life Advisers president and Labour peer Lord David Lipsey, who campaigned for a higher means test, says: “[Budget reforms] have major implications for the means test as if you have capital above a certain amount you lose out.
“If people take cash instead of income they will be worse off by miles, and a lot of people will be taking it.
“The rules will have to be revised or it will be a major obstacle to what the Chancellor wants to achieve.”
Former care services minister Paul Burstow says: “It is right to raise the question about how pension pots interact with the means test, and the Treasury and the Department of Health need to discuss this.”
Care policy adviser Peter Barnett says: “Consumers will be hit pound for pound on means testing if they take their pension as cash.”