Almost a third of adults unsure how they will finance their later life costs

Just under a third of people in the UK (31 per cent) do not know how they will finance their needs in later life, according to new research from National Savings & Investments (NS&I).

Individuals are not certain how they will finance services such as nursing home or care fees in the future.

However, 26.7 million adults in the UK (54 per cent) have began thinking about their financial needs, while just over a quarter (27 per cent) of these adults have actually started to put financial plans into practice.

Of those who have yet to consider financial planning for their futures, over a quarter (27 per cent) admit they do not want to think about such events. Some 23 per cent say they have not had time to think about their later life financial needs, while just under a fifth (19 per cent) prefer to take a short-term view of their finances and use the money they have for the present.

Furthermore, 12 per cent don't consider that this situation will affect them in the near future and believe they will have plenty of time to consider such planning going forward, while seven per cent of individuals do not consider financial planning for the future as important.

Worryingly, some 43 per cent of people who have yet to consider their financial planning in later life admit to having no idea how to finance such needs.

An increasing number of people are now caring for their parents and others when they retire and this cost is not being taken into account by many. A quarter of individuals who care for or need to care for others will do so by relying on the pensions and benefits of the person being cared for, while (23 per cent) said that they would need to make financial sacrifices of their own in order to fund the care.

John Prout, NS&I Retail Customer Director, said: "With people living well into their eighties, many more of us are likely to need care in the future, and are likely to need to care for others also. Getting the right information as early as possible is vital to making sure you get the best possible care you can in later life."

By Amy White