The Care Bill, Financial Information and Advice and Dementia Chris Horlick, Chairman

1. The Care Bill, Financial Information and Advice and Dementia Chris Horlick, Chairman PayingForCare Ltd

2. Awareness: expectations & understanding 34% of consumers believe that ‘Care is free like the NHS’ 1 Only 21% of self funders approach their Local Authority 33%+ of over 75s have not even discussed how they will pay for their long term Care 2 95% believe the social care system is difficult to navigate 3 Source: 1 ABI Q4 2011 2 Mintel Feb 2013 3 Counsel and Care survey 2010

3. Awareness: expectations & understanding 76% have never heard of any care funding products 4 43% of all residents of care homes are self funders 5 800,000 people in the UK with Dementia 6 80% of people in care homes have dementia or memory loss 6 Source: 4 GfK NOP survey March 2010 5 Laing & Buisson 6 Alzheimer's Society

4. People with Dementia and self-funders in context 800,000 people with Dementia in the UK and 43% of all people self fund their care i Therefore 344,000 people with Dementia will self fund their care Fewer than 10% of all people in care get qualified financial advice ii 25% of self funders will entirely deplete their wealth to care costs iii Source: i Laing & Buisson – Care of Elderly People UK Market Survey 2012/13 ii Oliver Wyman survey 2009/10 iii LGiU Independent Ageing Council Support for Self Funders March 2011

5. People with Dementia and self-funders in context • Greater longevity in care • More in residential care • Higher costs • Greater need for financial advice • Potentially less capacity to grasp the detail • Powers of attorney 1

6. 1

8. The Care Bill • Cash • Investment • Insurance • Mortgage / property • The State • “we don’t need to worry now because we will only have to find £72k - and the state will pick up the rest of the cost…..”

9. Clarity or Complexity: the £72k ‘Cap’ • Assumes £700 per week cost of care • Assumes £500 per week local authority rate

10. Immediate needs annuity Care Funding Plans LA

11. How do you pay for Care? Fees to pay = £23k esc 5% pa 7 1 5 4 3 2 6 Value of investment year £108,831 £189,000 £176,190 £115,361 £161,404 £122,282 £144,463 £129,619 £125,175 £137,396 £103,332 £145,640 £78,709 £154,379 1: Invest £200k 2: Partnership Purchase Care Plan £97,329 Property revenue For illustration purposes only. The growth rates used  assume the FSA mid rate of 6% net of any charges. It is assumed that the cost of care is  paid for via withdrawals from investment and escalate at  5% pa verses purchasing an INA and investing the balance of £200,000. This forecast is not a reliable indicator of future performance and investments may grow at a higher or lower rate than that assumed. Higher returns than that assumed would mean that capital would erode more slowly. However, low investment returns would mean a quicker erosion of capital.

13. ……“my advice is you should get some advice”

18. Tools

19. PayingForCare enquiries “air-gap” General Advice Regulated Advice Enquiries in to PayingForCare from service users of: Advisers Local Authorities Advisers Care associations Advisers Charities and 3rd sector Advisers Care advocacy services On-going quality and outcome measurement Advisers Residential care providers Domiciliary care providers Advisers Hospital discharge services Enquiries out to qualified, experienced and regulated specialist care fees financial advisers Care/Health information services

20. PayingForCare Partners include: Local

21. Thank you