The cost of care is a leading concern for affluent Britons but few have made detailed plans for it, new research from Rathbones has discovered.
The findings from Rathbones’ newly launched report The New Retirement Reality, show that 40% of UK adults with at least £250,000 in investable assets rank the cost of care among their three biggest retirement concerns.
Yet, only just over one in 10 (12%) have made detailed plans to cover those costs, while 45% admit they have not meaningfully factored care into their retirement planning at all.
The lack of preparation is reflected in the inaugural Rathbones Retire Well Index, which measures how actively affluent households are preparing for retirement and later life. It tracks real-world actions, from pension engagement and retirement planning to estate planning, care-cost preparation and responses to pension inheritance tax changes.
The Index is scored on a scale of 0 to 100, where 100 represents the highest levels of reported preparedness. Across the households surveyed, the average score was 44 out of 100. Even among respondents who described themselves as ‘extremely prepared’, the score was only 50 out of a 100 on average, Rathbones said.
Stephen Field, director of advice, supervision and oversight at Rathbones, commented: “Care costs are the elephant in the room of retirement planning. Many people tell us they worry about them, but far fewer are taking practical steps to prepare. That preparation gap is reflected in our Rathbones Retire Well Index – even among those who believe they are well prepared.
“With people living longer, but not necessarily healthier lives, more retirees are likely to face periods of ill health or care needs. Without a plan, money intended for travel, lifestyle goals and family could ultimately be used to fund care instead.”
The report also revealed widespread retirement anxiety among wealthier individuals. While more than three quarters (78%) have a clear retirement funding plan, 45% still worry they have not saved enough.
Field added: “Even if they have enough money to retire, many people aren’t sure how long it will last. Having wealth and having confidence are not necessarily the same thing.”
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