Retirees reining in spending due to social care cost fears, research finds

Four in ten people aged 55 and over are reining in their spending due to worries over social care costs, research has found.

In the study by life insurance and pensions provider Aegon almost a third of ‘baby boomers’ said having enough money for pay for help in their old age was crucial.

Steven Cameron, pensions director at Aegon, told the Express: “A large proportion of baby-boomers are concerned about funding their future care costs, and with good reason.

“The cost of formal care can be immense and retirees often face selling their house and rapidly depleting their lifetime savings to pay for this, extinguishing any plans to pass on an inheritance to future generations.

“What makes it worse is that until the Government sets out clearly how much individuals will in future be expected to contribute, it’s almost impossible to plan ahead.

“Fears of being unable to pay their way means some are spending less than they can afford to, stopping them fully enjoying their earlier retirement years.”

Most people in England are required to pay for all their care costs unless their assets and income are below £23,250.

Latest figures show it costs an average of £32,344 each year to stay in a residential care home.

The research found that cost worries were forcing people to increasingly rely on friends and family for care.