Councils should help people budget care costs effectively, survey says

According to survey by Citizens Advice, three out of five people who have withdrawn money from their pension savings have not planned for how they will meet future care costs.

The survey found that just 16 per cent of people who have taken money from their retirement pot had subsequently budgeted for the care costs they may face as they grow older.

Meanwhile, two thirds of people who have not budgeted are still employed full-time, with 10 per cent of such participants saying they are hoping to rely on others such as the government or family to help provide financial help.

Gillian Guy, chief executive of Citizens Advice, said: “Getting the right guidance is key in helping people think about and plan how they will fund their retirement - including costs which are more tricky to consider, such as care fees.

“There is also an opportunity for local authorities to help people plan ahead for future care costs, by providing clear information about how funding for care works and how much it costs.”