Long term care funding should take note from pensions

Long-term care funding has a lot to learn from "how the pensions debate has moved on", says Association of British Insurers director of general insurance and health, Nick Starling.

At this morning's Health Committee on social care, Starling compared the Dilnot Commission with the Pensions Commission and said he hoped to see parliament move beyond party political constraints to address the social care funding shortfall, as had happened with pensions. This would be a starting point to "start to build awareness and consensus and a realisation from people how to meet their own needs."

Starling also believed people should be thinking about funding provision in three tiers gleaned from pensions terms: immediate needs, retired - in the decumulation phase, and those in work. The key is that people should be educated at these phases and any financial products should be developed to address distinct needs at these different stages of life.

In addition, Starling warned MPs, the UK was an "under-protected society" but the ABI is optimistic that financial services, including insurance would have a role to play to address the funding gap.