Aegon has given its ‘warm support' to the joint industry and Department of Health Statement of Intent on long-term care (LTC) funding.
The ABI and Government have signed a joint Statement of Intent setting out steps needed to help people understand their long term care costs and plan to ensure adequate funding.
The insurer said it has been pleased to contribute to the development of a clearer partnership between state and individual on paying for long term care, building on the new cap on eligible care costs.
Aegon said: "Pensions represent a state / private sector partnership and Aegon agrees LTC funding is also best delivered through such a partnership. By encouraging people to plan ahead, we can make sure they retain more control and have more choice over their future care options."
It said: "Part of making the right choice will be considering all future income needs, including personal contributions to long term care costs, and how to retain flexibility should that need arise.
"Our industry also needs to make it easier for individuals to look at all of their assets together on a consolidated basis - pensions, other savings and housing equity. This will allow people to make the best use in later life of the savings and assets they've worked hard to build up.
Aegon has set out its key hopes on the future of LTC funding:
• All individuals and couples are clear on what they may be expected to pay and what the state will provide and plan ahead, for example through making adequate pension contributions.
• When considering their options at retirement, individuals and couples always think through the implications of requiring long term care, with help from an adviser where appropriate.
• The Government continues to encourage and reward those who plan ahead and remains open to improving legislation and regulations to allow increasing flexibility within financial product solutions.
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