The post-war baby boom generation “has done pretty well for itself” and should be prepared to use its property wealth to pay for care in old age, a government adviser has said.
Lord Warner, who is drafting plans to reform the elderly care system, said it would be unfair to expect the working population to foot the bill for looking after their parents’ ageing generation.
He warned that the “squeezed” middle-classes face potentially the greatest burden, amid concerns that it is already too late to help ease the “catastrophic” costs likely to hit the recently retired.
The former health minister called on insurance firms to develop “creative” new products to allow pensioners to protect themselves against being forced to sell their homes to pay for care and support.
But he warned that the independent commission drawing up reforms for the Coalition would have to consider how to exploit the “big chunk of potential” funding currently locked up in housing.