Demand for long-term care to rise by 37%
May 03, 2012
A report warns that long-term care costs will soar over the next 13 years and suggests people should consider how they would fund this type of care in the future.
The number of people needing long-term care is likely to rise by 37 percent by 2025 as a result of longer life expectancy, a report has found.
This will be accompanied by a massive increase in the overall cost of long-term care services, from the current total of £21.8 billion a year to £37.9 billion, according to LV=.
Research by the retirement specialist suggests that by 2025, the average cost for someone relying on long-term care services will be £33,000.
At present, people with assets in excess of £23,250 are not eligible for government support to pay for residential services in nursing or care homes.
But almost a third of respondents to LV='s poll said they thought the government should fund the total cost of people's long-term care.
Vanessa Owen, the company's head of equity release, said: "It is a real concern for people who have the burden of long-term care costs approaching, as currently they could be faced with an open-ended bill which makes it difficult to plan effectively to meet these costs.
"With our report highlighting that the cost of care looks set to increase by 27 percent in real terms by 2025, people need to make sure they have thought about the possibility of paying for care, either for themselves or loved ones, and how it would be funded."
The government is currently considering its response to the Dilnot commission's report, which considered the future of long-term care funding.