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Sep 1, 2021

37% plan to use state pension for care costs

More than one in three over-60s would use their full new state pension entitlement to contribute towards care costs, according to a report.

Canada Life polled 642 people aged 60 or above and found that 37% would use their state pension to pay for long-term care.

The average care home costs between £600 and £800 a week, which is about four times the new full state pension of £179.60 a week, according to separate research from the charity Age UK.

That could mean some pensioners must find an additional £400 to £600 every week to afford a care home.

This is underpinned by a combination of a surge in inflation affecting the care sector and a lack of retirement planning.

The average care home stay of two-and-a-half years has spiralled in recent years and currently costs £86,710 for residential care or £118,170 for nursing care.

Alice Watson, head of marketing and insurance at Canada Life, said:

"The over-60s have thought more about their long-term care needs in the last year, perhaps in part due to the pandemic.

"However, there are still a worrying number of people who haven't and think their state pension will be enough to foot the bill."

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