REVIEW
EQUITY RELEASE
We need to talk about care Alice Watson head of marketing, insurance, Canada Life
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equiring social care in later life is often a difficult and intensely personal decision for an individual or family unit to make. All too often this decision is brushed under the carpet for as long as possible, which can sometimes limit the opportunities available when it comes to care decisions. By approaching the subject with your clients or loved ones as early as possible, wheels can be put in motion that can let your clients continue enjoying their retirement with peace of mind and security. It is concerning that Canada Life research1 has discovered that more than 70 per cent of over 60s have given no thought to planning for later-life care, despite the fact that demand for such care is on the rise. This is evidenced by analysis from the King’s Fund, which found that in 2019/20 1.9 million people had requested support from their councils, an increase of over 100,000 when compared to 2015/16.2 It may not be an easy subject to bring up with your client, but it could be essential in driving a tricky question to the surface. Looking back at Canada Life’s research, we know that people are putting off the conversation; in fact, more than twofifths (44 per cent) of respondents said they would not think about care until either they or a family member gets ill, while more than a quarter (28 per cent) have put off thinking about care because it is emotionally overwhelming. Additionally, a quarter (25 per cent) have put off thinking about care because of the financial anxiety surrounding it. Among those who have thought about care, half (49 per cent) have
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discussed it with family members, followed by a little over a quarter (27 per cent) who are actively saving and building up investments to pay for it, and 17 per cent who are cutting unnecessary spending to try to afford it. Of course, care in older age doesn’t always have to mean a residential care home. There are many options available to provide varying levels of support when or if the time comes, and research shows these are much more popular with the over 60s. A fifth of respondents would opt for a move into assisted living, and a further 19 per cent would downsize to a smaller property. Sixteen per cent would rather pay for one-on-one care at
home. For some families, releasing equity from their property could help them to finance these additional measures or to make necessary modifications to the family home, such as installing a stairlift or an emergency alarm system. The wealth tied up in property can help to ensure independence and life satisfaction in later years. As advisers and providers, it is our responsibility to design products that support this and empower our customers to feel like they can make decisions out of love rather than necessity. M I *1 Research conducted by Opinium among 2000 UK adults between 20-24 May 2022 2 https://www.kingsfund.org.uk/audiovideo/key-facts-figures-adult-social-care www.mortgageintroducer.com
