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Future retirees – beware the ‘middle class care gap’


An ageing population inevitably means that more and more of us will need care in our later years.

But our Citizen 2025 research suggests that those aged 55+ – the so-called baby boomer generation – aren’t doing enough now to ensure that they can provide for their future care needs.

Greater life expectancy coupled with dwindling savings and pension pots are contributing to what is being termed a ‘middle class care gap’ – where an affluent generation find themselves struggling to afford care fees as they have failed to plan adequately for the cost and length of later life.

One in four people are likely to need long-term care at some stage in their lives. But with care home fees expected to reach an average of £70,000 a year by 2035, many people will be faced with no option but to rely on public sector care homes to meet their needs.

So what are this generation doing to address this potential financial shortfall? Certainly they’re working longer with 56% of the 55 year olds we surveyed in employment and expecting to work well past retirement age – no doubt keen to build up their retirement pot.

On the flipside however, it’s estimated that around 28% of people aged 55-64 – that’s roughly 2 million people – currently have no pension savings at all.

Angela Thomas, Wills + probate Partner, says:

“Although many are happy to continue to work for some years yet, a desire to help out children struggling to get on the property ladder, as well as enjoy their retirement years, does mean that some baby boomers could be left with a dwindling pot of funds with which to fund care provision in their later years.

Gone are the times that retirement was short-lived and a respite from a hard working life. Today’s baby boomers need to prepare for the long haul. The challenge will be how this generation will maintain their work, life balance, support their children with housing and childcare issues of their own, as well as fund their future care.”

Further information

Our Citizen 2025 white paper looks at a range of issues that we in Britain will face in 2025, from employment to retirement and the UK’s ageing population, to family life, marriage and divorce, property, estate planning and inheritance. The paper includes expert comment from Saga, Relate, Mercer and Fox Davidson.

You can download the full Citizen 2025 white paper here.

If you would like to speak to someone about the paper, call our marketing team on 0117 325 2929.

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