Nearly half of Britons would rather spend their pension if they got control of it, rather than shoulder long-term care costs, Thomas Kenny has said.
The head of technical pricing at Partnership said people worried about being slightly above the £23,250 care-cap threshold, would rather reduce their income in retirement, so their assets fall below the threshold, than struggle to fund their own care.
Mr Kenny said this concern in households whose assets sit just above the threshold for state care aid, could result in people depleting their pension pots.
He said the proportion of people who would be happy to reduce their assets has almost doubled from 23 per cent in 2013 to 41 per cent this year.
Adviser view
Janet Davies, co-founder of national advisory network Symponia, said: “The way to ensure any action is the most appropriate is to go to a qualified care fees adviser. Such deprivation and reliance on local authorities is not sustainable, but local authorities will not let it happen.”
Impact of Deliberate Derivation of Assets on Local Councils:
Region | % who would deliberately deprive themselves | No. people entering Care Each year | Potential Cost per region |
| | | |
North East | 41% | 8,506 | £92,486,160.00 |
North West | 51% | 19,447 | £240,848,712.00 |
Yorkshire | 40% | 14,471 | £150,193,129.41 |
West Midlands | 39% | 12,071 | £125,573,347.06 |
East Midlands | 53% | 13,800 | £209,180,400.00 |
East | 39% | 15,388 | £192,549,295.06 |
London | 31% | 10,412 | £114,297,437.65 |
South East | 40% | 24,565 | £330,071,040.00 |
South West | 35% | 16,906 | £178,766,181.18 |
England | 41% | 135,565 | £1,589,631,741.18 |
Source: Partnership
