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Zurich: Pensions will form part of care funding solution

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.”

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  1. The coalition government is running with its own care commission due to report in July 2012 but with local authority cutbacks of up to 40% where does the money come from?

    You guessed – you! The key thing about the paper is to look for some kind of pre-funded insurance and yes thats right theat requires money!

    So tell me, when the average size of fund that buys an annuity is below £25,000 and this is more or less the pre-funded payment amount required – where does the money come from?

    The facts are the the sale main residence is still the only way to fund care fees especially as the punblic will not pay the amount necessary for pre funding, and will not pay the taxes necessary to cover the care fees while then seeing the main residence being passed onto the next of kin!

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