‘Growing market’ for care IFAs: Chris Horlick, Partnership
Andrew Dilnot, author of The Dilnot Report and chair of the Commission in Funding of Care and Support, has still not received an answer from government from his highly anticipated report into long-term care.
Some may say that perhaps the government has bigger things on its mind than the anticipated £1.7bn cost of implementing Mr Dilnot’s recommendations.
Others, like Chris Horlick, managing director of care at annuities provider Partnership, think that the coalition government, unlike others, has actually put long-term care on the agenda.
Mr Horlick, Partnership,says it is “harsh” to say that the government should have responded to the Dilnot Report by now.
“Actually if you think about it, given the relative inaction by previous governments, the coalition has put social care in the original coalition agreement. The department of health has [also] published its vision of social care and they continued with the law commission reform, which was started by the previous government.
Either people aren’t getting appropriate advice and aren’t buying the right products or they are getting the wrong advice and buying inappropriate products
“The Law Commission has now reported and has come out with very useful, very sensible and interesting issues that need to be resolved to give us a new legal structure for social care.”
Mr Horlick says that in terms of the Dilnot proposals, the key issue is the promotion of advice.
In fact, he says that “one of the most shocking statistics I have heard” is that out of 53,000 “self-funders” who went into residential care two years ago, only 7,000 got got appropriate financial advice.
“And the local government information unit estimates that 25 per cent of ‘self funders’ run out of their capital prematurely and, as a result of that, they have to fall back on the state.
“We can’t say there is a specific correlation between not getting adequate advice and running out of money prematurely but it seems either people aren’t getting appropriate advice and aren’t buying the right products or they are getting the wrong advice and buying inappropriate products.”
Growing centenarian market
Mr Horlick is keen to get the message across that the market for care is, as a result of a rapidly ageing population, a growing market and, for this and other reasons, IFAs should be considering becoming care specialists.
“Last year there were just under 13,000 centenarians in England and Wales and by 2060, there will be half a million. That’s a 10-fold increase in people aged 100 or more. That is absolutely staggering and these are the people that will be required care.
“The market is just inexorably going to grow and that is why advisers should be interested.”
Typically, the good specialist financial advisers are helping ensure that people get the care home of their choice and can fund it for as long as they live, which is an average of four years in a care home, Mr Horlick adds.