By Rachel Williams. . Former PPP lifetime care director Peter Gatenby is to head up a newly-formed...
By Rachel Williams.
.
Former PPP lifetime care director Peter Gatenby is to head up a newly-formed venture called Age Concern Financial Services.
A subsidiary of the charity's trading arm, Age Concern Enterprises, the company aims to become the first-choice financial services provider for the over 50s through a comprehensive range of savings and insurance plans.
While the full product range has yet to be confirmed it is likely that LTC will feature on the agenda.
Gatenby said: "It is rumoured that the Government will make a decision on LTC before Christmas. However, we think it would be foolish to make any firm decisions on the subject until we have had any announcement from the Government.
However, Gatenby said that LTC was not the main focus of the new company, adding that the philosophy behind the venture is to look at all the needs of elderly people.
In particular, he said there was a big need for the elderly to generate an income and as a result the company will be looking to develop an equity release plan.
"Equity release is important, whether or not changes are made to LTC.
Low sum-assured life cover which is popular with the lower income elderly for purposes of funeral planning will also be central to the range.
Gatenby emphasised that distribution will vary according to product, and while some may be sold direct or through Age Concern outlets others will be sold through IFAs.
Products will be provided by CGU Life, with ACFS becoming the company's appointed representative, and products are expected to be on the market within the first quarter of 2000.
CGU's role in the venture will be in underwriting and administration as well as product design. Sandy Johnstone, long term care strategy manager at CGU said that this will be beneficial for both parties.
He said: "In areas such as long term care and equity release there will be considerable joint benefit. A significant input from Age Concern will ensure our products are genuinely sympathetic to the needs of the elderly.
Speaking at the International Longevity Centre UK Symposium held at the end of October, Gatenby said that financial services providers had failed to recognise the diversity of need in the rapidly growing over-50s market.
He said: "For example, there are the older retired with high assets and low incomes, the younger retired who are still wealthy as well as the pre-retired over-50s who have a high disposable income.
For the older retired population Gatenby said that there was a need for high income generating investments, simple savings vehicles, impaired life annuities and equity release, which has been the most commonly asked for product in the Age Concern outlets.
For the younger retired, Gatenby outlined a need for long term care insurance, inheritance tax planning and flexible annuities. He also identified a need for protection that will cover medical conditions with a high waiting list.
He added: "Nowadays there is a higher expectation of lifestyle in retirement and with increased longevity a longer period will be spent in retirement. There is a big market opportunity for providers willing to look at this market.
