A new study has highlighted mounting concern about care costs amongover-55s.
Care costs have now overtaken inheritance tax (IHT) as the main worry for people retirement planning in Cheshire, Oswestry and elsewhere across the UK.
The survey of 2,174 adults was conducted by opinion poll company YouGov in conjunction with a wealth management firm. It identified the growing number of Brits taking an interest in the escalating costs of later-life care. As a result, many are sidestepping inheritance tax preparations that could materially affect their eventual legacies. Care cost concerns were also prioritised over other financial issues such as depleted savings in retirement and possible family disputes or unequal treatment of beneficiaries when passing on assets.
Many of those surveyed were financially unprepared, with nearly a quarter having not determined if their estates were liable for inheritance tax. Around 41% believed their current situation would minimise the impact of IHT, whilst 23% were less convinced their financial strategy would reduce liability in the future.
The survey recorded regional differences in the confidence levels of respondents across the UK. In terms of estate planning undertaken to reduce IHT exposure, those in the North West felt better prepared than people in the South East.
Commenting on the findings, wealth management expert Yasin Patel said they reflected an understandable anxiety amongst retirees over whether they have the means to support later-life care, at a time when financial costs are rising and life expectancy increasing. For those people, it is important not to neglect IHT planning when prioritising more immediate concerns.
