Less than 10% of over 50s understand what the new care cap will mean for them, according to Saga.
The latest Saga Populus poll showed that while 82% of over-50s are aware of the cap on care costs, less than one-in-ten (9%) knew what the limit was.
Worryingly, the poll also found that 70% thought that the calculation for the care cap started as soon as someone was assessed as having a care need, and when prompted less than half (48%) correctly said somebody would have to be assessed in critical or substantial needs to qualify.
The care cap was launched as a safety net that would prevent people having to sell their homes to pay for care, however the poll highlighted that many over 50 seem to have been misled by the hype.
The details of the cap are still being debated by the government, however, in the last Budget George Osborne announced the cap will be set at £72,000.
Tim Pethick, director of strategy for Saga, said: "Our research clearly shows that the government's publicity machine has worked wonders in ensuring people are aware of the new safety net that they've introduced - but people are being lulled into a false sense of security.
"It is clear that mass confusion prevails around both the eligibility and calculation of the care cap. This lack of clarity does not bode well for the country, individuals or the politicians that will have to answer to the families that will still see their family homes sold to fund care costs"
Nearly 70% of over 50s wrongly thought that accommodation costs would be included in the calculation of the cap.
The poll found that 57% thought that any medical treatment costs would be included, 37% believed food costs would also be included, while 32% thought that personal care such as haircuts would be in the calculation.
The research also revealed that one in three also mistakenly believed that if they selected a care provider that was more expensive than the local authority, the total amount would be included in the calculation.
