WIXLIB

For financial intermediary use only. Not approved for use with customersOpportunities in theLong Term Care Market@retirementwhizz1Steve Martell,Director, Development,Intermediary SalesJust Retirement

HousekeepingAt the top right of your screen you will have a dashboard whereyou can ask questions at any point throughout the webinar.To raise your hand ina webinar click here.To ask a question,please type hereand we will respondto your questioneither in the webinaritself, or shortlythereafter.2#jrwebinarFor financial intermediary use only. Not approved for use with customers

Agenda The current size of the Care market Trends in the Care Market The advice opportunity in the care market for you How you can maximise the opportunity for your business The key points you need to know when giving advice in the care market Your chance to put your questions to our experts3For financial intermediary use only. Not approved for use with customers

Learning Objectives Understand the size of the opportunity in the Care Market Learn about the key things you need to know when giving advice in theCare Market Investigate how to make the most of the opportunities in the Care market Gain an understanding of the support that is available to you when givingadvice in the Care market4For financial intermediary use only. Not approved for use with customers

Intermediary poll 1To what extent are you active in the long term care market?Please click on one option.I advise clients regularlyI advise clients sometimesI refer my clients to another adviserI’m interested in becoming qualified to advise clients on long term care5For financial intermediary use only. Not approved for use with customers

For financial intermediary use only. Not approved for use with customersThe Long Term Care Opportunity6

A massive market that is likely to growGrowth innumber ofolder peopleIncreasingCost ofcareHealthyLifeexpectancyLack ofGovernmentsupportFor financial intermediary use only. Not approved for use with customers7

The size of the opportunity33% of women aged65 and 20% of menaged 65 are likely toenter a care homeat some point in thefuture32.8m older peoplehave care relatedneeds169% of people agedover 85 in the UKhad a disability orlongstanding illness126% of women agedover 85 in 2011reported being inbad or very badhealth11.Age UK Later Life factsheet August 20152. The Strategic Society Centre Immediate Needs Annuities: Their role infunding care1.9m receive formalsupport in relation totheir care needs124% of men agedover 85 in 2011reported being inbad or very badhealth13. Commission on Funding Care and Support8For financial intermediary use only. Not approved for use with customers1m people neededhelp with their‘Activities of DailyLiving’ in 20112

The Care marketThe Total Care Market 55.6bnPublicy Funded 8.2bnPrivately Funded 1.5bnDomicillaryCare 9.7bnInformal Care 30bnLaing Buisson: UK Market Report9Informal Care 30bnPrivately Funded 9.2bnResidentialCare 15.9bnPublicly Funded 6.7bnFor financial intermediary use only. Not approved for use with customersTotal PrivatelyFunded FormalCare Market 10.7bn

Growth in the number of older peopleUK Population aged 65 and olderSource: Laing Buisson 2015 and ONS10For financial intermediary use only. Not approved for use with customers

Increases in life expectancyYears of retirement, aged 6521.118.711.410.6Office for National Statistics July 201511For financial intermediary use only. Not approved for use with customers

Care fee InflationThe Annual cost of Residential Care HomesSource: CEBR – Cost of Care in Later Life12For financial intermediary use only. Not approved for use with customers

Potential growth in Care marketNumber of older / physically disabled living in UK residential settings(non Conservative projection)Source: Laing Buisson 201513For financial intermediary use only. Not approved for use with customers

Key customer considerationsPeople generally don’t know:If they are going to need care 150,000 people enter a care home eachyear The need for Care increases with age 16% of the UK population over 85 live in acare home / hospitalHow long they will need care for The Non-healthy life expectancy for a maleaged 65 is 7.3 years The Non-healthy life expectancy for afemale aged 65 is 8.6 years On average, people stay 2 years in a CareHome (3.5 years if self funding) 14Around 10% of residential care homeresidents stay for 8 years How much the care will cost them The average cost of residential care home is 30,000pa , or 40,000pa with Nursing Care The cost of care varies according to thecomplexity of the client’s needs The cost of a care home can be 45% moreexpensive in the SE compared to the NEHow they will fund their care Different rules on State benefits apply indifferent parts of the UK Proposals for a Care Cap in England havebeen pushed back to 2020 Between 30,000 and 40,000 people need tosell their property to pay for residential careeach year Access to advice is limitedFor financial intermediary use only. Not approved for use with customers

The Care market opportunity15Demand forcareUnknowndurationMassivemarketCost ialFor financial intermediary use only. Not approved for use with customersNeed helpplanning

For financial intermediary use only. Not approved for use with customersThe Long Term Care Market16

Key points Who needs care When do they need care / what type of care do they need Impact on your clients How you can help your clients Key things to know when giving advice on care issues17For financial intermediary use only. Not approved for use with customers

Typical care resident Female Single / Widowed Age 82 All types of socio economic group Asset Rich, Income poor One or more medical conditions (not just frailty)18For financial intermediary use only. Not approved for use with customers

Average care costs – England – 2013/14Average cost of care in residential homewith nursing care per week 756Average cost of care in residential homewith no nursing care per week 563Live for:8 yearsSource: Laing & Buisson Surveys of Care Homes, Care of Older People UK Market Report 2014/1519For financial intermediary use only. Not approved for use with customers 314,496

Financial position of clients2070% ofthose 75 95% ofthose 80 25,000if 65 HomeownersDebt FreeSavingsFor financial intermediary use only. Not approved for use with customers 200 – 300pwIncome

What care do they needPrevalence of Medical Conditions of Care Home Residents80%70%60%50%40%30%20%10%0%Incontience DementiaHeartConditionStrokeLaing Buisson: Care of Older People21For financial intermediary use only. Not approved for use with customersDiabetes &EndocrineCancerChallengingBehaviour

Dementia in the UKOnepersoneverythreeminutesdevelopsdementiaAge UK Later Life factsheet August 201522For financial intermediary use only. Not approved for use with customers225,000peopledevelopdementiaevery yearin the UK

Dementia Friends1,475,302Friends and ChampionsCreating dementia friendlycommunitiesChanging perceptionsDementia Friendshttps://www.dementiafriends.org.uk/23For financial intermediary use only. Not approved for use with customers

Sources of admission to care homesNursing CareResidential CareResidentialHome11%Other / NotKnown1%Other / NotKnown2%Nursing Home3%Hospital31%Nursing Home7%ResidentialHome13%Own Home26%Own Home53%Laing Buisson: Care of Older People24For financial intermediary use only. Not approved for use with customersHospital53%

For financial intermediary use only. Not approved for use with customersImpact on your clients25

Who is your client? Female Single / Widowed Age 82 All types of socio economic group Asset rich, Income poor One or more medical conditions (not just frailty)26For financial intermediary use only. Not approved for use with customers

Who is your client?The children of : Female Single / Widowed Age 82 All types of socio economic group Asset rich, Income poor One or more medical conditions (not just frailty)27For financial intermediary use only. Not approved for use with customers

Clients at 8028I need to organiseresidential care –urgently!What if things geteven worse andcosts go up?What impact willthis have on theestate?Should we registerthe Power ofAttorney now?For financial intermediary use only. Not approved for use with customers

Questions to ask Fact find ALL existing clients about expected inheritance Establish how parents’ needs are funded - can inheritance beprotected? Is there appropriate Power of Attorney in place – for bothProperty & Financial Affairs and Health & Welfare? Are you willing to set aside an amount for possible future carecosts? Are you acting as an attorney for anybody? Are there any special considerations you would like me/us totake into account when . (access, hearing, sight) If you were to need care/now that you need care, wherewould you like that to happen?29For financial intermediary use only. Not approved for use with customers

Other sources of leads Professional Connections such as Solicitors? Care Homes Estate Agents Local Voluntary Groups Local Authorities30For financial intermediary use only. Not approved for use with customers

For financial intermediary use only. Not approved for use with customersHelping your client31

How you can help your client? Understanding their care needs Outlining everything they need to consider Explaining their care fee funding options32For financial intermediary use only. Not approved for use with customers

Care funding optionsSupportfrom theStateByPurchasingan INACare FeesFromInvestments33For financial intermediary use only. Not approved for use with customersFromIncome

Care funding optionsSupportfrom theStateByPurchasingan INACare FeesFromInvestments34For financial intermediary use only. Not approved for use with customersFromIncome

Eligibility for local authority supportLikely tohave asignificantimpact onwellbeingNeeds arisefrom physicalor mentalimpairmentor illnessEligibleNeedMake personunable to achievetwo or morespecifiedoutcomes35For financial intermediary use only. Not approved for use with customers

Local Authority means tested thresholdsLower ThresholdUpper ThresholdEngland 14,250 23,250Scotland 16,250 26,250Wales 23,750 23,750N Ireland 14,250 23,250 Please note that these capital amounts include the value of any property owned, unless ‘disregarded’ All rates are applicable for 2015/16.36For financial intermediary use only. Not approved for use with customers

Deferred payment agreement - eligibility 23,250 Not disregarded Suitable security37For financial intermediary use only. Not approved for use with customers

Pension freedoms and deliberate deprivationIf you spend, transfer or give away any money that you takefrom your pension pot, DWP will consider whether you havedeliberately deprived yourself of that money in order to secure(or increase) your entitlement to benefits. If it is decided thatyou have deliberately deprived yourself, you will be treated asstill having that money and it will be taken into account asincome or capital when your benefit entitlement is worked out.38For financial intermediary use only. Not approved for use with customers

NHS continuing healthcare Package of care arranged and funded by NHS No financial means test No personal contribution Most people won’t qualify39For financial intermediary use only. Not approved for use with customers

NHS funded nursing care payment NHS-funded nursing care payments are provided by the NHS to care homesproviding nursing care, to support the provision of nursing care by a registerednurse It is tax free and non means tested To be eligible, you must need nursing care and be staying in a care homeregistered to provide nursing care Paid directly to the care home, so it is worth establishing whether the Care Homefees are net or gross of thisEnglandScotlandWalesN Ireland 112 78 140.90 100Al rates are applicable for 2015/16 at the standard rateIn Scotland, a personal care allowance may be added40For financial intermediary use only. Not approved for use with customers