Funding long-term care a priority over inheritance

Funding long-term care a priority over inheritance

Consumers are more worried about paying for long-term care than providing an inheritance to their children, according to the largest financial services survey in the country.

St James’s Place Wealth Management interviewed 47,000 people about their concerns and priorities as part of the annual Wealth Account Client Survey.

This is the first time the Gloucestershire-based firm has shared the results of its annual survey.

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When asked to consider their three top priorities for the future, 75 per cent said that ensuring they had enough to live on in retirement was the most important.

Nearly half – 47 per cent – placed importance on having sufficient funds to pay for their long term care.

Meanwhile just over a third – 38 per cent – believed leaving an inheritance was among their top three priorities.

Andrew Humphries, marketing and communications director at St James’s Place, said: “While ensuring they can support the lifestyle they want in retirement remains the number one goal for our clients, we are seeing a change in their priorities as the provision of long-term care becomes ever more important.

“The cost of welfare is increasingly being borne personally and its impact is now being felt.

“Our research shows that these goals are more important for many clients than passing on an inheritance or providing for children.”

When asked which issues were of concern to them over the next three to five years, 69 per cent were worried about the state of the UK economy, while 54 per cent were nervous of the outcome of the general election.

Meanwhile, 43 per cent were concerned about the potential impact of the UK leaving the European Union but only one in three – 29 per cent – worried about a potential rise in interest rates, and 35 per cent were concerned about the cost of living.

Adviser view

Brian Tabor, founder of Hertfordshire-based Care Matters, said: “It is very good that people are thinking about it, but I suspect that people in their mid-60s who are not in care are more concerned about ways of avoiding becoming self-funders rather than paying for it themselves.”