“At present, however, I feel that providers are reluctant to enter a market which may or may not be there in a few years, and that as a result clients are left with the prospect of self-funding – and with little idea of the eventual total cost.”
Jamie Jenkins, head of pensions strategy, at Standard Life, said the FCA’s paper in establishing a market that works well for consumers in later life is to be welcomed, and emphasised the need for later life advice.
"There has been considerable time spent to help close the savings gap for our ageing population and the success of automatic enrolment will make a big difference to future generations, while financial advisers have already adapted well to the changing nature of retirement through the government’s ‘Freedom & Choice’ initiative.
"Many are already very engaged in providing advice on the many considerations and needs of people in later life.
“While the range of products available will always need to be reviewed to ensure they remain fit for purpose, it’s key that people have access to appropriate guidance and, where necessary, regulated advice to help them make the right decisions.
"We do believe it is a challenge, and we are keen to work collaboratively with advisers and the regulator to reach the best outcome possible for customers.”
Steven Cameron, pensions director at Aegon, said the FCA is right to prompt the government to take action on long-term care provision.
He added: "It’s an issue that successive governments have dodged and we now urgently need a consensus between individuals and the state as to how much people should be expected to pay towards any care needs."