A survey carried out by Citizens Advice revealed just 16% of those accessing their pension pot under new freedoms had budgeted for their potential future care. Everyone accessing their pension since freedoms were introduced should consider the financial impact that may have on their future by undertaking due diligence and seeking professional advice.
Whilst 16% in this survey have budgeted for care costs have they ensured their pension release has been legitimate and not part of an elaborate scam?
Citizens Advice have previously advised that it had calculated around 10.9million consumers had received unsolicited contact about their pension in the last year. The scale of this contact must continue to be countered by scam awareness such as the Government initiative Project Bloom.
We are also delivering a strong message of awareness and help on Grant Thornton UK LLP's website.
A survey of over 500 people who have accessed their pension since freedoms were introduced in April 2015 finds just 16% have budgeted for care costs they may face as they grow older. A further 23% have given some thought to this and have a backup plan, such as equity release or selling their home. Of those who don’t have a plan for paying for future care costs, Citizens Advice finds: 1 in 10 (10%) would rely on others, such as family or the government. Almost 1 in 3 (29%) say they have thought about future care costs but have no plan about how to meet these. 3 in 5 (60%) say they have not thought about how they’d pay for for future care needs.