The pensions and insurance industry must create a long term care (LTC) savings vehicle separate to other products to tackle the problem of growing care needs amongst the elderly, Axa said.
The Office for Budget Responsibility's (OBR) Fiscal Sustainability Report yesterday claimed the cost of caring for the ageing population, through state pensions, social care and health spending, will rise from 36.3% of GDP in 2016 to 41.7% by 2061. Taxes must rise or spending in other areas must be slashed to meet these spending needs, the OBR said. However, questions are arising over how feasible such spending will be. Mike Morrison, head of pensions development at Axa Wealth, said: "The industry must develop new product innovations to support the needs of those in later life. ...
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