Lifetime mortgages could fund care in old age

Lifetime mortgages can be a viable source of income that could help cover expenditures in old age.

The coalition government has been warned against solely depending on taxation to raise adequate funds to care for the growing number of elderly citizens by a leading think tank.

According to Policy Exchange, relying on taxation alone could mean taxpayers shelling out as much as £106 billion per year which would in fact be enough to fund a second NHS.

Instead, the think tank has proposed that the government should consider the partnership model put forth by King's Fund, the European model of social insurance, as well as a state-backed insurance scheme which would see individuals topping up their long-term care.

Last week, Andrea Rozario, director general of Safe Home Income Plans, pointed out that equity release could be used to fund long-term care for the elderly.

Ashall Glover Financial Services lifetime mortgage advisers

Posted by Louise Tilston