Steve Webb, a former UK pensions minister, is “proposing a potential route to help (tackle) the troubles surrounding paying for long-term care,” writes Rebecca Smith for City AM.
The proposal is called a ‘care pension,’ a product that would combine drawdown arrangements with insurance against future costs, she writes.
Now the director of policy at mutual insurer Royal London, Webb has released a paper on the proposed product.
“To make this work, the government would need to make sure payments into such policies were tax-free, and would need to introduce an overall cap on lifetime care costs,” he is quoted saying. “With these changes, millions of people could start to build up protection against the risk of facing catastrophic care costs in later life.”
According to Webb, more than one in four Britons will spend some of their later life in care.
More: Insurance again care risk “ought to be possible.”

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapension

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