The cost to the State of people running out of funds to meet their long term care costs will treble to £2.75bn in England alone over the next 20 years, according to Partnership.
The long term care specialist predicts a massive explosion in the numbers of people living to 85 and beyond that will put huge pressures on workers and State funding for the long term care of older people.
And it also reveals the UK's ‘oldest' councils which, it says, will be transformed into virtual retirement communities, after conducting an investigation of Office of National Statistics (ONS) data.
It found that over 85s, who are most likely to require long term care, will increase by 60% across the UK in the next 20 years, and that without proper financial advice, the cost of people running out of funds early to meet their long term care costs and falling back on the state is set to nearly treble in England alone to £2.75bn.
That burden will fall on the future workforce which could become even more stretched as, in 2030 in the 'oldest' councils, under 16s will fall to two for every person aged over 85 years, and for every four people working, three will be retired.
Currently in the top 10 elderly councils, there is just one person aged 85 and older for every four people aged under 16.
Chris Horlick, managing director of care at Partnership, is concerned that this presents significant funding issues as there will be far fewer young people entering the working population to fund the retired population through direct taxation.
"The impact of our ageing population on the oldest councils will be extreme. We must ensure that people are making sufficient provision for their long term care funding and that they receive qualified financial advice," he says.
"We estimate that the current cost of self funders (41% of the total number of residential care home residents who have more than £23,250 in assets including property) depleting capital prematurely and falling back on the State will nearly treble from £1bn in England alone to a staggering £2.7bn.
"We have based this prediction on a conservative inflation assumption of 2% - but this need not be the case if those people received proper financial advice to fund their care.
"Currently out of the 53,000 people annually who enter into residential care homes and have to pay for their care costs, only 7,000 receive appropriate financial advice," he adds.
At present, Christchurch is rated as the ‘oldest' council, followed by West Somerset, Rother, East Devon, and Arun.
However, by 2030, West Dorset is expected to be top of the pile, with West Somerset again second oldest, followed by, Berwick-upon-Tweed, North Norfolk, and Christchurch.
