Long-term care crisis as UK’s oldest counties are revealed

The number of people aged over 85 is likely to increase by 60% by 2030 and the cost to the State of caring from them is likely to treble from today’s figure, a report published this week suggests.

The study, carried out for retirement solutions specialist Partnership, also highlights which councils will have the oldest populations now and in the years to come. It suggests that for every four people working in 2030, in the oldest council areas, three will be retired. As a result, there will be a massive burden on future workforces to fund care, as under 16s fall to two for every person aged over 85 years in oldest councils.

Partnership said that without proper financial advice the cost of people running out of funds early to meet their long-term care costs and falling back on the state is set to nearly treble in England alone to £2.75bn.

The study of Office of National Statistics (ONS) data by Partnership shows that Christchurch in Dorset is currently the UK council with the oldest population, with three retired people for every five in work. In Christchurch people aged over 85 currently make up one in six people in retirement.

By 2030, however, Christchurch will be surpassed by West Dorset, West Somerset, Berwick-upon-Tweed and North Norfolk, Partnership estimates. In 20 years’ time for every four people working in these councils, three people will be retired.

Partnership’s managing director of care, Chris Horlick, said the study presents “significant” funding issues as there will be far fewer young people entering the working population to fund the retired population through direct taxation.

“The impact of our aging population on the oldest councils will be extreme. We must ensure that people are making sufficient provision for their long-term care funding and that they receive qualified financial advice,” he said.

Partnership estimates that the current cost of self funders (41% of the total number of residential care home residents who have more than £23,250 in assets including property) depleting capital prematurely and falling back on the State will nearly treble from £1bn in England alone to £2.7bn.

Horlick said that many more people need to see “proper” financial advice to fund their care, if the State is to be able to cope.

“Currently out of the 53,000 people annually who enter into residential care homes and have to pay for their care costs, only 7,000 receive appropriate financial advice,” he said.