The pandemic has prompted over-60s to rethink their long-term care plans, with research from Canada Life revealing 1.5 million over-60s who were previously open to care homes for themselves or family members now wouldn't consider it.
Among those over 60 who would not consider care homes for themselves in the future, the most popular alternatives were:
• Moving into assisted living accommodation (26%), an increase of 36% from 2020
• Downsizing to smaller, more manageable properties (24%), up 26% on last year
• Paying for one-on-one care at home (22%), an increase of 57% from 2020.
Moving in with family members was also a popular option. 7% would explore building a granny annex as an extension to their child's home and cohabiting with them, 4% would move into an already built granny annex, and 3% would move into a family member's spare room.
For those looking to move in with family or pay for home improvements, 70% expect that they would need to alter their home or their child's home in some way.
These alterations include:
• Making modifications to the bathroom - 39%
• Installing an emergency alarm - 28%
• Fitting a stair lift - 27%
• Installing mobility features such as ramps and railings - 21%
• Converting a room into a bedroom - 14%
• Buying new furniture such as a bed with rails - 12%
Alice Watson, head of marketing, Insurance, Canada Life said: "The pandemic has prompted people to re-evaluate what is most important to them, so it isn't surprising that the over-60s are considering their later-life care plans. And, with care home costs standing at anywhere between £600-800 a week, those in and approaching retirement are clearly looking for alternatives, whether that be making home modifications or moving in with family members.
"As we continue to enjoy living longer, not all of those years may be in good health and paying for care will become a reality for many, whether that be for themselves or their loved ones. However, it's important to remember that there are a number of solutions available to help cover the cost of care and speaking to an adviser is a good place to start. They can highlight how products such as equity release can be used to help people stay in their homes, while accessing cash to fund care solutions."
In separate news, 1.3 million UK investors believe either that they are not on track with their financial plans or have been completely thrown off course due to the COVID-19 pandemic, according to a new study by Capital Group.
The research indicated that one in five investors knocked off course by the pandemic estimate it will take them at least five years to restore their long-term financial plans back to health.
Designed to gauge the pandemic's impact on UK investors, the nationally representative survey, among 1,003 retail investors aged over 45 years with £50,000 or more in investments, revealed that "Can I still expect the same income and lifestyle in retirement?" is the key question for investors post-pandemic.
Looking at the more short-term impact, the survey also highlighted that more than a third (37%) of those without a financial adviser lack confidence in the performance of their investments over the next 12 months, compared to only a fifth of those with an adviser (21%).
Despite this marked difference in confidence against financial goals between those with and without an adviser, about 6 million UK investors2 (7 in 10) still currently manage their finances independently and don't seek advice.
Chris Miles, head of Financial Intermediaries UK, Capital Group, said: "UK investors will have come through moments of severe disruption and turmoil in the past but it's clear the COVID-19 pandemic has taken its toll on many investors' financial plans, with recovery for some over five years away.
As the research shows, it's in times like these that the value of advice comes to the fore. We can see it playing a pivotal role in helping clients navigate challenges, seize opportunities, and plan ahead. It really can be the difference between investors questioning ‘Can I still?' to believing ‘I can' when it comes to their financial goals."
Capital Group has operated in the UK for more than 40 years and its London office is the group's second largest investment office globally. Capital Group employs approximately 450 associates in the UK, including 70 investment professionals, across a range of functions. The company currently offers 32 Luxembourg-domiciled UCITS funds to UK investors.