Only a third have planned financially for long-term care

Hodge releases findings to mark Carers’ Week

New research from specialist lender Hodge has revealed that only a third (33%) of people have made financial plans for long-term care.

While 67% of those who took part in the study said they are confident that their income will allow them to maintain their current lifestyle as they grow older, the majority of respondents had not made plans for long-term care.

More than half (55%) of those questioned said they are keen to learn more about money and finances but only 27% always seek professional advice before making a financial decision.

This week (June 7^th to 13^th) is Carers’ Week, an annual campaign to raise awareness of the contribution unpaid carers make and the challenges they face – this year’s theme is around making caring visible and valued.

Hodge is warning that not properly planning for your retirement – including financial planning for long-term care – can lead to a situation where family has to step into help or where rapid financial solutions are needed, which might not necessarily be the best ones.

Emma Graham, Business Development Director at Hodge, explained: “Even though a third is a small number, it is still positive news that these people have made some sort of financial plan for the possibility of long-term care, but our research shows that planning ahead for retirement is still quite low down on the list of priorities.

“Many people in the later life category, so those that are over 50, think retirement is a long way off and there are often many other demands financially to deal with, like marriages and grandchildren. We know that many people over 50 are still enjoying life. They don’t feel the need to slow down, to think ahead, because they are still actively working and don’t consider Later Life products to be relevant to them.”

Emma added: “Interestingly, half of those questioned (50%) said they were willing to work into later life/ retirement to support themselves or their family, but good financial planning might help to prevent that situation.

“That said, our Later Life products are not just about retirement, they are so much more than that. Our message to all those over 50 is stop and think about what you want in the future and ask, “when you are looking to put your feet up and look after yourself a bit more, will you be in a position to do it properly?”

As part of the research, Hodge interviewed over 700 people about their attitudes towards finance, retirement and lifestyle. This consisted of 200 Hodge customers and a further 500 consumers.

Hodge has a range of Later Life products so that over 50s can plan their retirement, including the 50+ Residential Mortgage and RIO Mortgage. For more information about Hodge and its later life products, please visit here: https://hodgebank.co.uk.