Our new research, shows care funding fears are squeezing over-45s who need to financially support their parents and children.
Our nationwide study found more than one in four (28%) over-45s are holding back on helping their children as they are concerned that they will have to fund care for their own parents. That rises to 42% among those aged 45 to 55 facing competing calls on their cash from elderly parents and adult children.
At the same time, they are increasingly focused on their own potential need for future care in old age – our study found 70% are worried about how to pay for any care they will need in the future.
The challenge faced by the Government, local authorities, individuals and families throughout the coronavirus crisis has demonstrated yet again how stretched care services are and how important funding for the sector is. Costs of residential care can be as much as £55,000 a year if nursing care is needed while care at home can cost £14,000 a year, with families in England needing to make contributions if they have assets of more than £23,250.
The research shows strong demand for advice on care funding options – 23% of those questioned said they would value advice on how to support families in care while also funding their own potential care in the future.
A major issue, highlighted by the research, was concern about retirement income and assets lasting due to rising longevity – nearly three-quarters (73%) of those questioned said they were concerned about gifting money to children or parents in case their own funds ran out.
Mike Morrow, Wealth & Platform Director, said: “The coronavirus crisis has highlighted the pressure the care sector is under across the country and how much people rely on the staff working in it.
“Of course funding care in old age has been a major issue for years and one which Governments have grappled with but not been able to address which means families and individuals have to bear the brunt once NHS and local authority funding is taken into account.
“Many families are already having to cope with the need to look after their own parents while trying to help out their children who may need support with university and trying to buy a house.
“The issue highlights the value of financial advice in finding ways to balance the needs of different generations while helping clients to plan for their own retirement. Families understandably want to help each other but that support needs to be channelled.”