Residential care more expensive than home care, says SHIP

13 October 2008

The equity release trade body says that the average annual expense of care in a retirement home stands at £32,000 compared to the £6,846 cost of home care.

Andrea Rozario, director-general of SHIP, says that the £700bn equity release market offers a good vehicle to fill the funding gap.

She says: “As their likelihood of needing private care increases, pensioners must consider how they would fund any care needed.

"By taking out a lifetime mortgage or selling part of the property in exchange for a regular income or a lump sum using a home reversion plan, pensioners can ensure that any domiciliary care costs are covered without a negative impact on their retirement finances.”