Life - Articles - 37% underestimate cost of care by £7,000

 More than a third (37%) of over-45s underestimate the annual cost of a residential care home by over £7,000 reveals the latest findings from the Partnership Care Index. The Care Annuity Provider has tracked actual vs. perceived cost of a residential care home to ascertain whether people realise how much they will have to pay.

 With a significant media focus on this issue, people are increasingly aware of the costs and the typical over-45 underestimates the cost of a care home by just £400. However, 38% believe the State will meet these costs for them which suggests that under the current system as well as the system proposed under the Care Bill, many may be facing with a nasty financial shock.

 Those in the South East (-£1,955) and East Midlands (-£1,898) are the least aware of the actual cost of care while those in the West Midlands (+£3,199) and North West (+£2,571) over-estimate how will need to be paid. However, these are average figures and the costs can be much higher or even double – especially certain regions such as the South East.
  

 Chris Horlick, managing director of care, Partnership, said: “While it is good news to see that the typical person over 45 only under-estimates the average cost of residential care by £400 per year, if you dig into the figures a much more concerning picture becomes apparent.

 “Despite the publicity over the last few years, 38% of people continue to believe that the state will pay for their care and 37% under-estimate the cost of residential care by over £7,000 per year. This suggests that for a large cohort of people when they either need to arrange their own care – or sort out care for a family member – they will be faced with paying substantially more than anticipated.”