Pensioners should be prepared to raid their pensions, downsize, or even sell their homes and rent to pay for long-term care in old age, the head of a government review has suggested.
Most people are not “upset” by the prospect of using some of the wealth they have built up in property to buy a place in residential care or pay for home help when they are frail, according to Andrew Dilnot.
He suggested that some people would even be happy to sell their homes, invest their money in other forms and rent after retirement, and urged politicians to accept that property wealth should be used to pay for care.
Mr Dilnot, an economist and broadcaster, is leading a commission examining the future funding of long-term care and support for England’s ageing population for the Department of Health.
He suggested that a “cap” on individual contributions could be the best way to make sure people do not “lose everything” when they face “catastrophic” care home bills.
Currently, elderly people face nursing home costs that can run to hundreds of thousands of pounds while receiving no contribution from the state.
Speaking at conference organised by the over-50s group, Saga, Mr Dilnot said a fairer system was needed in which the burden of costs is shared by the state, individuals and private insurance firms.
But most people are not “upset” at the thought of contributing towards their own care costs, including “the idea that some of that might come from their house”. He said it was important “to help politicians realise that”.
“We need care to be part of this long-term planning for the second half of life. At the moment it is almost always a distress purchase,” he said.
“Once we have done that we can start to move to a world where (we are) starting to think about whether the house we are living in now actually makes sense 10 years from now, whether we should think about moving to a house that is more suitable for us.
“Some people will get to retirement and they will sell their owner-occupied home and put their money into some other form of investment and rent, which is not so unusual in other countries,” he said.
“In a new world there will not be the fear of losing everything but the opportunity to take control over your life. That means that you might need to use some of the wealth that you have put into your house, you might need to use some of the wealth you have accumulated in your pension, you might save specifically for it. But individuals will have to make a contribution.”
The Labour leader, Ed Miliband, offered to hold cross-party talks with the coalition on the future of funding for social care for elderly and disabled adults. The Dilnot commission is due to make its final recommendations next month, with a government white paper expected by the end of this year.
Mr Miliband said he was making a "serious offer" to David Cameron to engage in talks about the commission's recommendations.
"We will come to those talks with an open mind about the best way forward, not simply advocating what we have proposed in the past," he said. "But the principles are clear - high quality care for those that need it, funded in a fair way, with proper accountability for those who deliver the care.
"Let's get round the table, work in the national interest, towards real change which addresses one of the big long-term problems in our country."
David Cameron said he would welcome the opportunity for cross-party talks on what is "a very difficult issue".
"If there is an opportunity for cross-party work on that, I thoroughly welcome it," he said.
Following the financial crisis at the Southern Cross care homes group, Mr Miliband urged the Government to consider extending regulation of the sector to cover the financial stability of the companies involved.
He said the collapse of a major care home group could have serious consequences for the taxpayer if the Government were forced "to step in and pick up the tab".
Source http://www.telegraph.co.uk/
But most people are not “upset” at the thought of contributing towards their own care costs, including “the idea that some of that might come from their house”. He said it was important “to help politicians realise that”.
“We need care to be part of this long-term planning for the second half of life. At the moment it is almost always a distress purchase,” he said.
“Once we have done that we can start to move to a world where (we are) starting to think about whether the house we are living in now actually makes sense 10 years from now, whether we should think about moving to a house that is more suitable for us.
“Some people will get to retirement and they will sell their owner-occupied home and put their money into some other form of investment and rent, which is not so unusual in other countries,” he said.
“In a new world there will not be the fear of losing everything but the opportunity to take control over your life. That means that you might need to use some of the wealth that you have put into your house, you might need to use some of the wealth you have accumulated in your pension, you might save specifically for it. But individuals will have to make a contribution.”
The Labour leader, Ed Miliband, offered to hold cross-party talks with the coalition on the future of funding for social care for elderly and disabled adults. The Dilnot commission is due to make its final recommendations next month, with a government white paper expected by the end of this year.
Mr Miliband said he was making a "serious offer" to David Cameron to engage in talks about the commission's recommendations.
"We will come to those talks with an open mind about the best way forward, not simply advocating what we have proposed in the past," he said. "But the principles are clear - high quality care for those that need it, funded in a fair way, with proper accountability for those who deliver the care.
"Let's get round the table, work in the national interest, towards real change which addresses one of the big long-term problems in our country."
David Cameron said he would welcome the opportunity for cross-party talks on what is "a very difficult issue".
"If there is an opportunity for cross-party work on that, I thoroughly welcome it," he said.
Following the financial crisis at the Southern Cross care homes group, Mr Miliband urged the Government to consider extending regulation of the sector to cover the financial stability of the companies involved.
He said the collapse of a major care home group could have serious consequences for the taxpayer if the Government were forced "to step in and pick up the tab".
Source http://www.telegraph.co.uk/
No comments:
Post a Comment