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Centre for Policy on Ageing | |
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| Paying for care costs in later life using the value in people's homes | | Author(s) | Les Mayhew, David Smith, Duncan O'Leary |
| Journal title | Geneva Papers, 2016 |
| Publisher | International Association for the Study of Insurance Economics, 2016 |
| Pages | pp 1-23 |
| Source | Link to download on Demos website at: http://www.demos.co.uk/project/caring-for-an-agein... |
| Keywords | Home equity release schemes ; Income [older people] ; Assets [elderly] ; Finance [care] ; Reports. |
| Annotation | With the number of UK citizens aged 75+ doubling to 10 million by 2040, and with 1.3 million people already receiving social care services in England alone, social care funding is a key public policy challenge. The Government has launched a set of reforms designed to get social care funding onto a sustainable footing, by establishing a new level for what individuals and the state will pay. The reforms are designed to encourage individuals to explore how best to use their available wealth and assets to meet care costs, through a mixed system of local authority and private sector care-funding options. One option is to use the value in the home to bridge the cost between out-of-pocket costs and care home fees. In this article, the authors consider two new financial arrangements designed to meet the needs of people in different financial circumstances based on releasing equity from the home. These are an equity-backed insurance product, and an "equity bank" that lets a person draw down an income from their home. This paper draws on two previous research publications: Mayhew and O'Leary's 'Unlocking the potential' (Demos, 2014), and Mayhew and Smith's 'The UK Equity Bank: towards income security in old age' (International Longevity Centre - UK, 2014). It was first published in The Geneva Papers, 2016, (1-23), published by the International Association for the Study of Insurance Economics. (RH). |
| Accession Number | CPA-160415001 A |
| Classmark | WQB: JF: JD: QC: 6K * |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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