The government is currently reviewing the funding of social care and is planning to publish a Green Paper on a new approach to funding "at the earliest opportunity" following several delays.
Several options are believed to be discussed, including pension-linked and Isa-linked products.
As part of the Centre for Policy Studies’ social care funding review, published on April 29, Conservative MP Damian Green suggested that people should be able to purchase a care supplement, which would be similar to an annuity or insurance policy, to ensure individuals have funds for more expensive care if needed in the future.
This money would come from individuals’ existing pension pots, lifetime savings or via equity withdrawal from people’s homes and would act as a top up to government funded state care.
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