Your IndustryMay 17 2016

SJP eyes launch of long-term care products

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SJP eyes launch of long-term care products

St James’s Place is looking into providing products to meet what it predicts will be growing demand from its clients for help with long-term care.

Tony Dunk, director of investor relations, said the average age of its clients is late 50s and in several years they will be asking how they can finance care costs.

“The baby-boomers hit retirement in the next few years and there is a lot to suggest that the later life may not be a healthy later life.

“I don’t think we have seen the development of products and services that will look at that market in specific terms. Product development will happen because the market will demand it,” he said.

He could give no further details at this stage, but confirmed it is an area of interest.

“When we did a survey last year we asked our clients about their concerns and one was having enough money in retirement to have a comfortable retirement, but another was long-term care.”

Since the Care Act came into effect in April 2015, councils have had new legal duties relating to their provision of long-term care.

This includes pointing people in the direction of financial advice if it is needed, as well as changing how local authorities determine who is eligible for support.

One of the most well-known aspects of the Care Act – which became law in 2014 – is the cap on care costs which was due to come into effect from April 2016, However, last year this was delayed until 2020 to allow more time to better understand the cap’s impact on the market.

In March a specialist advice service for long term care funding was launched to help IFAs get new business on planning for social care.