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Ageing society strategy is redundant without social care clarity

21/09/2017

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 004932kathleen.gallagher@omwealth.com

Notes to Editors:

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

Old Mutual Wealth oversees £131.3 billion in customer investments (as at 30 September 2017).

It has an adviser and customer offering spanning: Financial advice; investment platforms; multi-asset and single strategy 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; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

Old Mutual Global Investors (‘OMGI’) is the asset management business of Old Mutual Wealth with £39.8bn funds under management (as at 30 September 2017). On the 19th December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Following managed separation from Old Mutual plc, Old Mutual Wealth will rebrand to Quilter plc. Each of the businesses within the Quilter Plc group will be rebranded over a two-year period, with the exception of Quilter Cheviot, which will retain its existing name.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million (as at 31 December 2016) customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

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