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Press comment: Population stats highlight the social care crisis facing the UK

21/10/2019

If you are covering the release of the national population projections by the ONS, please see the below commentary from Ian Browne, pensions expert at Quilter:

Ian Browne“There is an increasing trend that we are moving away from the historical nanny state and that puts more onus on individuals to ensure they are prepared for later life. The ONS stats show the proportion of people aged 85 years and over is projected to almost double of the next 25 years. Essentially, the baby boomers are getting older and not dying, and this trend will only continue so long as the NHS continues to provide the level of medical care it does today. Three things immediately jump out in regards to this statistic that are in urgent need of a rethink, or even reform. The cost of the state pension, the provision of social care and the funding of the NHS are all going to need to be suitable for generations to come, but each is woefully underfunded currently, in part because of the increases in life expectancy.

“Of those three, the complete lack of a social care policy and strategy is glaring. We urgently need action as we are already at a crisis point. As we are approaching a general election, it is going to crucial to see what provisions are made in this area in each of the party’s manifesto. We appear to be moving towards a structure where the state commits to pay for some and the public will have to self-fund the rest. However, each party needs to spell out their plans in black and white. Any repeat of the ‘dementia tax’ debacle could end up seeing a ‘Grey Rebellion’.

“As a result, the impetus to save for later life has never been greater. For many people working backward will probably deliver the most accurate picture of how much you need to save. So consider your financial goals, factor in how much you are able to save over the next few years and then work out a suitable retirement age. But if that level of saving is not realistic don’t let it put you off altogether. Getting into a savings habit is a step in the right direction.

"The best way to supercharge your savings is to start as early as possible and give your money more chance to grow. This is primarily because of ‘compound interest’; the snowball effect that occurs when interest is added to your savings or investments, giving you a bigger pot with which to earn more interest in the future, and so on. A good rule of thumb is to invest half your age as a percent of your salary as a minimum. So if you’re 30, invest 15% of your salary, if you’re 40 invest 20%.”

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com
Gregor Davidson020 7002 716407917 522784gregor.davidson@quilter.com

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 £118.7 billion in investments (as at 30 September 2019).

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: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

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

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

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.