Zurich Financial Services pensions management director Dave Lowe says pensions will “inevitably” form part of the Government’s solution to the UK’s care funding crisis.
With the Dilnot Commission due to deliver its recommendations and advice to policymakers in July, it remains unclear how rising care costs will be paid for in the short and long term.
At a Saga seminar last week, commission chairman Andrew Dilnot suggested more resources need to be committed to care from the Government and private individuals.
Lowe says: “The pension fund is the principal liquid asset people have at retirement, so it will inevitably be part of any solution but there are significant challenges. It still is not clear if, given the 8 per cent automatic enrolment threshold, people will accumulate sufficient pension wealth to pay for care.”