New research from Vitality has found widespread concerns over how to pay for later life care, with almost half of respondents saying they do not feel confident about being able to meet the costs.
In the consumer research carried out with 2000 UK adults, 55% reported fears of being diagnosed with dementia, while 54% said the same for Alzheimer’s. Furthermore, 56% of respondents revealed that they are concerned about becoming too frail to look after themselves in later life.
On top of this, 49% said they are not confident that they could meet the costs of social care if needed in retirement, compared to 32% who were confident that they could meet these costs, pointing to a gap between awareness and financial preparedness.
Affordability and uncertainty appear to be key barriers among those who lack confidence that they could fund later life care. More than two-fifths (43%) believe social care would be too expensive, even if they started saving now. A further 28% said they do not know how much care costs, while 24% admitted they have not thought about it, rising to 30% amongst those aged 18–34.
Worry about care extends beyond individuals themselves. Seven in ten respondents (71%) with adult children say they are concerned about the pressure such a diagnosis could place on their family, highlighting the emotional implications, alongside the practical ones, of later‑life care planning.
When thinking about how they would fund care, planning remains heavily focused on traditional routes. Over a third expect to rely on savings (36%), followed by pensions (28%) and the sale of property (15%). Only 6% expected an insurance policy to play a role, despite the recognition of later life risks.
Notably, of those who do hold a protection policy, over two-fifths (44%) of people said they are unsure whether it would cover conditions such as dementia, Alzheimer’s or Parkinson’s, suggesting confusion around how different cover operates later in life.
"For many people, concerns about later life care stem from uncertainty around cost and timing," Andy Philo, director of strategic partnerships at Vitality, said. "Conditions such as dementia or increasing frailty often feel a long way off, and by the time people start actively thinking about what they might need in later life, it can be too late to plan with confidence.
"That is why early conversations with advisers matter. As people live longer and survive conditions that would previously have been life-threatening, it is important that the industry rethinks what relevant, long-term cover looks like.
"In 2018, we introduced Dementia and Frailcare Cover (DFCC) in recognition of this, allowing policyholders of our Serious Illness Cover to automatically transition their cover to DFCC when the policy term ends. We want protection to adapt to people’s lives as they live them, continuing into later life without placing the burden of complex decisions on individuals years in advance."
