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Ageing society strategy is redundant without social care clarity


If you’re covering today’s paper from the Financial Conduct Authority on the ageing population and financial services, please see the following comment from Rachael Griffin, tax and financial planning expert at Old Mutual Wealth:

Rachael Griffin“Among the over-65 age group 40% have a limiting longstanding illness. It is crucial that policy and regulation recognise the needs of this growing part of the population and the regulator’s paper is an important step on a long journey.    

“A major burden on the ageing population, the FCA notes, is the cost of later life care, which has escalated in recent years. The government need to lead the charge on coming up with a long-term solution to the social care crisis and provide certainty about how care costs are funded. While the industry can remind people to think about care costs, the uncertainty makes it hard to plan as changes are on the horizon.

“Social care policy came to the forefront in the snap election, but has since fallen by the wayside as politicians focus on how to deal with the implications of Brexit. We are expecting a social care green paper in the near future and we hope that it will propose solutions that are simple, sustainable and communicated in consumer friendly language. Anything else will leave the public back at square one.

“The paper points out that people often do not plan for the increasing possibility they may have a mental or physical illness in their later life, leaving them financially vulnerable. Any plan to tackle the growing shift in demographics, needs to include making sure younger generations today are prepared for the potential issues in the future. We agree a campaign is needed to ensure the public is aware of the financial implications of these illnesses and the increasing likelihood that they may affect them. It is encouraging that there are now over 2.6m lasting power of attorneys in place, but dangerous misconceptions still exist and any campaign that looks to raise awareness about LPAs also needs to ensure it has an education element about how they work.

“While it is important to make it easy for older customers to deal with their finances, it’s also crucial to remember that older customers are often the main targets for scams and so we would caution that any other third party work-around should be used sparingly and have a robust framework. Otherwise, firms risk creating a hotbed for scam artists looking to take advantage of older customers.” 

For more information contact

Kathleen GallagherOld Mutual Wealth023 8072 629307990

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.