Nearly half of Brits would squander their wealth to make sure they qualify for council care cost coverage in their old age
Almost half (43 per cent) of people would be willing to deliberately deplete their assets to make sure their council pays for their care in old age, according to figures released today from specialist insurer Partnership.
By comparison, less than a quarter (23 per cent) said they would be prepared to do the same when asked in 2013.
Currently, people with assets over £23,250, excluding their home if certain relatives are resident in it, need to find the funding for their own care.
Partnership calculates that, if all those who suggested they would squander their wealth actually did so, it would leave councils finding a further £1.6bn for funding, at a time when the care sector is already under additional pressure to up pay to meet the National Living Wage when it comes into force in April 2016.
Those in London, where 9,603 people enter care each year, are slightly more likely to spend their riches than the rest of the UK, with 44 per cent saying they would fall back on this tactic to secure council support.
“Spending or giving away your wealth before you need care might seem attractive but it does limit your options and means that you are likely to have far less control over your future than you may hope,” said Jim Boyd, director of corporate affairs at Partnership.
Boyd continued: “Those consumers who would prefer to have more choice but wish to safeguard some of their assets need to speak to a specialist financial adviser. They are fully qualified to not only show people how to structure their finances to meet their care cost obligations but also how to ring fence money to leave to their families.”