"With these changes, millions of people could start to build up protection against the risk of facing catastrophic care costs in later life."
However, not all people agree that Sir Steve's proposal can solve UK's care issues.
Nathan Long, senior pension analyst at Hargreaves Lansdown, argued that having a single product solution to solve the problems of long-term care funding is like "using an earbud to clean an elephant".
He said: "Successive governments have continually kicked the can down the road rather than go toe to toe with the complexities of the problem.
"There really are no easy answers, but fundamentally any solution must first tackle the huge public misunderstanding of the potential cost of care and the likelihood of actually needing it.
"Whilst people's awareness may increase over time as more and more people experience their parents paying for care, the reality is a major intervention is needed.
"Tax free pension pay-outs to fund care costs has potential as a long-term solution, but there are far bigger challenges that need to be met first."