Today’s green paper will lay out various options. On retirement, everyone who can would pay a lump sum of around £20,000 up front and nothing ever again. Or that sum could be attached to the value of their home, deducted from their estate after death along with accumulated interest. Or, if you delay retirement and don’t draw your state pension for three years, the sum would be waived altogether. These could be mixed and matched by paying a portion up front, and having a portion attached to the value of your home.
You see, we all already pay for our old age. It’s called National Insurance.
That large chunks of what we pay are pissed up against the wall on things which are not in fact national insurance is the problem, not that we are not paying for it.
For example, in those financing options, raising the state pension age is mooted as a method of paying for such care. Given that the pension is in fact social insurance, insurance against outliving your savings, the pension age should rise anyway. To the median age of death (currently 77 for men, 81 for women or thereabouts).
That would leave plenty of money out of what we are all already paying to pay for care.