Income, Capital and the Cost of Care in Old Age

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Abstract
According to ‘conventional wisdom’ older people are now relatively well off and, as a result, many are in a position to pay for their own care and housing needs in old age. In reviewing the evidence for this latter proposition the article provides a brief overview for the UK population and the implications of an ageing society for the care services. A summary of the main sources of income available to older people is undertaken, including home ownership and ways of releasing equity which might be employed to generate extra income. On the basis that it is also important to match information about financial resources available to older people to the cost of different services, the article reviews the likely costs of residential and nursing home care and the little that is known about the costs of domiciliary services. In short, the article presents a summary of the relevant background information and examines the issue of whether elderly people could (but not necessarily ‘should’) finance their housing and care needs in old age.