Can our homes pay for the care we need in older age? Asset wealth and an ageing population

There is growing acceptance that people will need to make better use of their property wealth to adapt and manage care needs as they age.

It is estimated that retired people have an estimated £1.4 trillion locked up in the value of their homes. However, despite this overall wealth, far too many retired people have scarcely enough income to enjoy a comfortable, healthy retirement.

This NHF report suggests that the current housing wealth and demands on the care system are making too many wide-ranging assumptions about the potential of asset wealth to solve the crisis in the social care system.

With the introduction of the Care Act in April 2016, it recognises the absence of a mature market for products to enable people to optimise their wealth and assets to meet future care needs.

It calls for affordable solutions for housing and care in later life that are flexible for people with low and middle incomes who will not be able to use housing wealth to pay for care needs.