The cost of care in later life is the major concern for people aged over 55 working beyond state pension age, according to new research.
Canada Life said older workers fear the financial implications of care.
Its survey suggested that of the almost two-fifths – 37% – of people over 55 who said they will work beyond their state pension age, a fifth – 20% – said it was because of concerns over the cost of long-term care.
The average cost of a care home comes in at around £32,000 a year depending on which part of the country people are based in, according to research by consumer group Which?.
Meanwhile one in four people are expected to require some form of care into old age, the figure used by the Dilnot Commission, which investigated the reform of adult social care in 2011.
So it’s hardly surprising worries continue about the financial implications of paying for care, despite a cap on costs being introduced later this year.
From October 2023, the government will introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime.
Alice Watson, head of marketing communications, Canada Life UK said: “Despite a cap on costs being introduced later this year, people are still concerned how they might be able to bridge the gap between their own financial position and the potential cost of care. “This concern may be due to the personal experience of those who have worked within the current system with their relatives.
She said it’s worth remembering the cap on costs doesn’t include all the costs of care – for example it won’t include rent, food and utility bills.
She said: “At the end of the day, people will need a holistic plan for potential costs as the area of long-term care is complicated and navigating the rules is challenging.”
Last month M&G warned that a third of UK adults are in the dark about how they would fund later life care despite being only a year away from retirement.
Details of the government’s new care cap are here
Canada Life’s survey was conducted by Opinium among 2,000 UK adults between 21-25 October 2022.
