There is a real need for product innovation in the long-term care market as well as new thinking on ways to help with planning for long-term care, according to a Metlife UK survey.
The insurer commissioned Citigate Research to conduct online surveys amongst nationally representative samples of 124 retirement specialist advisers in March and 114 retirement specialists in April.
It found that 90 per cent of advisers believe there is space in the current market for new products to be designed.
Around 29 per cent also believe a lack of saving for the potential costs of social care in old age is a major threat to the success of the Budget pension reforms.
The research also showed that 57 per cent of advisers think that long-term care funding has to be integrated into retirement planning as part of their new thinking on pensions.
Dominic Grinstead, managing director of Metlife UK, said: “Innovation needs to be encouraged and clients need to be aware of all the options open to them as that will stimulate more innovation.
“Advisers have clearly recognised the need for innovation in long-term care products and the central role planning for long-term care has in retirement income planning.”
Possible innovations on long-term care were outlined in a recent report by the government’s new champion for older workers Ros Altmann, including: allowing tax-free pension withdrawal if the money is earmarked for care; introducing an Isa allowance if funds are being used for care; launching family care savings plans; and providing workplace care savings plans alongside auto-enrolment.
