Belfast Telegraph

UK Website Of The Year

Home News UK

Pension pot raiders 'not budgeting for cost of care'

By Alan Jones

Published 23/08/2016

More than half of people who have taken money out under pension freedoms have not planned for future care costs, a new study shows
More than half of people who have taken money out under pension freedoms have not planned for future care costs, a new study shows

More than half of people who have taken money out under pension freedoms have not planned for future care costs, a new study shows.

A survey of 500 people who have accessed their pension since April of last year revealed that just one in six has budgeted for the cost of care as they grow older.

Citizens Advice said its research found that three out of five have not thought about how they will pay for care costs, with one in 10 hoping to rely on their family or the Government.

Local authorities should offer online or face-to-face services to help people plan for the future, said the report.

Gillian Guy, chief executive of Citizens Advice, said: "It is unsurprising that many people in their 50s are not thinking about how they will pay for care when the need for this could be 10, 20 or even 30 years away.

"But this issue does need some attention, otherwise people risk dipping into their pension now only to find they need some of the money later."

Belfast Telegraph

Read More

From Belfast Telegraph