Neither the government nor the FCA are taking care fees planning seriously enough, advisers have told a national trade body.
According to Symponia, the national trade body for later-life planning advisers, advisers said that fewer than a quarter of their clients were aware of the cap on fees as part of this year’s Care Act.
In a poll of Symponia’s members, 68 per cent of advisers said their clients were confused about what the care cap meant.
Most clients expected to pay no more than £72,000 for care during their lifetime – a figure that can fall far short of the total cost, depending on how long a client will need to be in care.
Symponia’s poll also found that 84 per cent of advisers said the government should introduce tax-relief on dedicated savings plans for future care fees.
And nearly two-thirds showed support for the idea of a special Care Isa.
Janet Davies, managing director and joint founder of Symponia, said: “It is clear that the coalition is still missing the mark and has a long way to go to crack the issues of elderly care funding.”
Key points
• Only 4 per cent of advisers claimed to understand the care cap ‘completely’; 92 per cent said they could explain it to their clients satisfactorily
• 78 per cent said they mention it during the first meeting
• 29 per cent preferred pre-funded products of the past
• 20 per cent said the cap will deter people from planning for future care costs
• 48 per cent said the government had not been successful in raising awareness of social care in Britain today
Adviser view
Bob Wilson, financial adviser at Norwich-based GreenSky Wealth, said: “This has been brushed under the carpet for too long. Care is complex, but there is no reason why there can’t be more players in the game.”
