Partnership has called for a greater promotion of equity release and annuities, as it finds 41% of over 45s would use property sales or rentals to fund care.
The Partnership Care Index, the first in a series, where almost 1% of consumers aged 45-85 say that they would need to fund long-term residential care by selling their property, while a further 10% thought they could rent it out.
Property was the 3rd highest payment method among the respondents, behind the State funding their care and pension income. Only 4% would use an insurance policy for long term care.
The majority of the consumers questioned (52%), said that they expect the State to fund residential care at least in part, and 45% would use pension income to help with the funding.
Chris Horlick, managing director of care at Partnership, said: "Estimates suggest that over 65s have unmortgaged equity of nearly one trillion pounds.
"As costs of long-term care increase more retirees are struggling to find methods to fund care aside from utilising assets such as property.
We believe that greater awareness of the benefits of Equity Release to fund care, will provide another vital source of income for those people who wish to use property to do so.
We also believe that Immediate Needs Annuities, which provide insurance to meet the costs of care will play a far larger role in due course. At present few people are aware of these products.
If the Government's imminent Social Care White Paper provides a greater focus on information and advice for people seeking to fund the costs of care - this will inevitably stimulate greater awareness of these important financial products."
If you went into residential care at some point in the future how do you think you might pay for it?:
- The State 52%
- Pension income 45%
- Your Savings 35%
- Selling your home 31%
- Income from savings & investments 24%
- Renting home out 10%
- An insurance policy for long-term care 4%
