Consumers remain confused about how they should best plan for their future care needs, the Actuarial Profession has concluded.
Although it is almost a year since the publication of Andrew Dilnot's report into the future of long term care (LTC) little has been resolved, was one of the key messages from a debate that took place at the Actuarial Profession's Health and Care Conference.
With the rumoured publication of a progress report on the funding of long term care now expected alongside the Government's White Paper on Social Care in June a key theme continues to be the confusion that the current system and Dilnot proposals could cause consumers.
Jules Constantinou, head of marketing at Gen Re said: "The lack of clarity around each citizen's personal responsibility, with regards to the funding of social care, that we face "pre-Dilnot" will remain until such time as there is a cross-party agreement on funding going forward. "
This was backed up through Partnership adding that, although it is estimated that £9.3bn each year is spent privately on social care in the UK, the evidence is that consumers don't plan sufficiently for their future needs and that the industry isn't supporting them with effective advice.
Constantinou added: "Dilnot's recommendations are the only game in town but they are expensive, especially in this economic climate. There is a role for the government to play in making sure that consumers are able to access appropriate and expert financial advice at the point of needing care."
Commenting on the only financial product currently aimed at the LYTC market, immediate needs annuities, James Lloyd of the Strategic Society Centre said: "The main market likely to see growth is the Immediate Needs Annuity market. Importantly, individuals will always have to meet their hotel costs in residential care so this market will always be there.
"Anything the government does to make the care system more generous, such as the Dilnot recommendations, will increase the size of the potential market."
