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By Debbie le Quesne

‘Leak’ reveals a savings solution. Is this really the best we can do?

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My recent weekend off had an annoying surprise. Scanning the newspapers to check essential TV viewing, I find a story about a leaked document that allegedly reveals the government is up for motivating people to save for their care in old age.

Just great. How is that going to help us now?

The leaked memo warns of a looming crisis. Looming? Wake up, it’s already here!

Sir Andrew Dilnot offered his solutions and they’ve been shelved. It appears our current elderly population is being somewhat overlooked in these new proposals (if they’re true).

Observer policy editor Daniel Boffey writes: “Ideas include Isa-style savings accounts – known as “care Isas” – with preferential interest rates for a pot of up to £75,000, which you would be able to withdraw to fund your social care or leave, tax-free, in a will. Another plan is that tax incentives could be offered if people wished to take from their pensions to meet social care costs.”

He goes on to say the memo was written last May by the then pensions minister Baroness Altmann in which it’s claimed she says the crisis has been left too long.

Let me quote some more . . . The memo also warns of huge political risks of allowing the crisis to unfold. “There is no money set aside for social care spending by individuals or by local authorities – needs have to be funded as they arise, and if the money is not there the quality and availability of care is compromised, causing scandals and misery that could potentially rebound on policymakers at some point,” it says.

Word has it the Dilnot proposals are dead in the water and I suspect the care industry as we have known it is too.

A savings solution is for too simplistic in my opinion. Would tax breaks encourage it to work? Only for the well off, I suspect.

Newcomers, who are younger . . . would they buy into it? I doubt it. My friends’ kids are too busy surviving the present and trying to get on the property ladder to have disposable income for their care that appears to them light years away.

If this ‘leak’ is the best offering, I think I need stress counseling or maybe anger management therapy . . .

 

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