Up to two million people will live with dementia by 2050, yet most are failing to plan for care costs, a financial planning firm has warned.
According to the Alzheimer Society, 850,000 people in the UK have a formal diagnosis of dementia but with one in six people over the age of 80 living with dementia, this is predicted to rise to over two million by 2050 as the population ages.
Despite this, a survey for Tilney suggests 87% of people have not made any financial plans for themselves regarding potential care costs further down the line, and 88% have not done it for family members.
There is also a lack of awareness over how much a care home will cost, with 20% believing it will be in the region of £1,000 to £2,000 a month. Over a quarter (27%) admitted they have no idea. According to a report by healthcare specialists Laing & Buisson, care homes costs typically range from £27,000 to £39,000 per year for a residential care home, or £35,000 to £55,000 per year if nursing is required. Homes in London and the South East can far exceed this.
The most common reason (26%) for not planning for care is that people simply do not like to think of themselves going into care. This feeling increases with age with 35% of people aged 55+ stating this as the main reason.
Ian Dyall, Tilney’s head of estate planning, warned the lack of planning could leave a real funding gap with regard to care fees.
“Whatever the government eventually comes up with it is unlikely to provide the standard of care that most of us would wish for, so it is vital to plan to pay for care ourselves and plan as early as possible,” he said.