‘Only 7% would seek care fee advice from IFAs’
Consumers who want advice on care funding are more likely to turn to charities or their local council than IFAs, the latest Partnership Care Index has revealed
A poll of 1023 consumers aged 45 and over, found that only 7 per cent would seek help from financial advisers, despite the huge waves of media coverage on the sector recently.
Chris Horlick, managing director of care for Partnership, said: “It is a matter of concern that so few would turn to IFAs for long-term care funding advice.”
The survey found that 46 per cent of people would use the Citizens Advice Bureau while 44 per cent would contact the local council or a social worker. Doctors would be used by 27 per cent and family by 24 per cent.
Charities and solicitors were also preferred to IFAs, but above banks as only 4 per cent of respondents said they would go to them for care advice.
In the absence of appropriate financial advice, Mr Horlick said self-payers, who constitute 41 per cent of all people in residential care, could purchase the wrong financial product to cover the costs of care fees, or even not buy cover at all.
He added: “I would encourage financial advisers to engage actively in the provision of care fees planning. Care funding decisions can be among the most important financial decisions for the whole family.
“Typically it is the children of those people going into care, aged 45 or over, who make the key financial decisions about how to fund care for their parents.
“As the oldest in our society who are most likely to be in need of care are due to grow substantially – the number of people aged over 85 is set to almost double in the next 20 years – financial advisers can be certain that demand for high-quality and appropriate financial advice will grow.”
Ruth Whitehead, principal of London-based Ruth Whitehead Associates, said: “I don’t think local councils or charities have the insurance or expertise to give an overview. Only an IFA can fill this area as funding can be very complicated. The ideal scenario is for an IFA to work in conjunction with charities and councils.”