The findings come from Partnership, the care annuity provider, whose second Care Index compares attitudes towards the cost of long term care across the UK year on year.
In 2012, the highest percentage of people, some 52%, thought that the state would pay for some or all of their care followed by pension income at 45%, savings at 35% and the sale of their home at 31%.
However, as care funding moves up the news agenda and consumer awareness grows, the largest proportion in 2013 now believe that they would sell their property to fund their long term care with 40% saying so and a further 9% said they would rent their property for an ongoing income.
‘Last year, we anticipated that property was likely to become a key source of funding for care. As the debate around the reform of social care funding in England has grown so too has the speed of change in attitude, as people's belief in the State is replaced by reliance on their own means,’ said Chris Horlick, managing director of Care at Partnership.
‘It is believed that people over the age of 65 have £753 billion of unmortgaged equity in their property. Accordingly property is an important source of value for people in retirement who are asset rich but income poor,’ he explained.
‘This research also suggests that equity release may provide another valuable mechanism to enable people to access the equity in their property to cover their care fees. However, it is critical that the majority of people, 57%, who are currently paying some or all of their care costs and may plan to use their property to fund their care fees get appropriate regulated financial advice,’ he added.
