Following the release of The Dilnot Commission Report on funding of care, AXA Wealth's Head of Pensions Development, Mike Morrison, comments:
"The report highlights the need for the industry to develop innovative product solutions that will provide for people into later life which can only happen if the financial services industry and government work together.
"Products such as equity release go some way to address the funding issue. However, with increasing longevity, consumers need a range of flexible products to suit their needs and allow their money to continue growing, but with a guarantee.
"We need to find a way to encourage people to build up a fund which is ring fenced exclusively for long term care. With this in mind, I believe that in addition to the annual pension contribution allowance of £50,000 a further £10,000 should be permitted to solely fund long term care which would be tax efficient. These savings can serve as a supplement to the £35,000 cap suggested in the Dilnot Commission Report. Crucially now more than ever, consumers will need qualified and independent financial advice to help them prepare and increase their pension saving.
"AXA Wealth fully supports simplified financial products across all ages and underpinning this entire concept is the need for easily accessible financial advice and better transparency for consumers across the board."
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