Skip to main content

Just Retirement moves into long term care market

A retirement specialists has announced it is developing a product to help the nation's elderly handle the hefty costs of long-term care, in response to the Government's plans to limit charges to £72,000 per person.

Enhanced annuities provider Just Retirement revealed it will be making a move into the long-term care market today, as it announced its third quarter results.

Although details of the product are spares at this stage, chief executive Rodney Cook has suggested in the first instance it will take the form of an immediate needs annuity, which sees long-term care part-funded by annuity income that is paid directly to care home providers free of tax.

Care home cap: The £72,000 limit on care home costs has prompted Just Retirement to enter the long-term care market.

Mr Cook said: 'I am pleased to announce Just Retirement will be entering the long-term care market during the next few months, initially with an immediate needs annuity solution. Further details will be published before the launch date.'

The Government earlier this year brought forward legislation to limit the costs of long-term care for the elderly, after growing concern over the number of people being forced to sell their homes to meet care home costs.

  More... Two in five over 45s expect to sell their home to fund long-term care, despite Government attempt to limit costs 'The end of annuities': As retirees face miserly returns on their pensions we ask... are annuities still up to the job? Retiring soon? Get an annuity quote Could equity release be right for you? Check our free guide

From 2016, the maximum an individual will have to spend on care will be limited to £72,000, while those with assets worth less than £118,000 will qualify for government help with the costs.

Just Retirement's announcement came as it revealed annuity sales for the first three months of 2013 had slumped to £230.6million, down 26.4 per cent on the £313.2million made in the same period last year.

However, this downturn reflects the impact of the EU gender equality directive that was enacted in December, as well as the Retail Distribution Review (RDR) that prevents financial advisers charging commission on sales, which came into force in January.

The EU gender directive meant that insurers could no longer discriminate between sex when selling annuities, which resulted in annuity rates for women rising and for men dropping, as men previously got a higher rate due to their shorter life expectancy.

The pending introduction of these two new regulations meant that there was a flurry of annuity sales during the second quarter up to the end of December, when Just Retirement's sales rose 64.3 per cent to £412.5million compared to a year before.

Total group sales for the nine months until the end of March stood at just under £1.25billion, a rise of 20 per cent on last year.

Of this figure, its equity release sales rose slightly in the third quarter by 1.7 per cent to £69.8million.

 

Mr Cook said: 'Just Retirement maintained a leading position in the individually underwritten annuity market with annuity sales of £230.6million during the quarter.

'Feedback we have received from intermediaries suggests the reduction in the third quarter is representative of the total intermediated market.'

Just Retirement is one of the largest providers of annuities on the open market, with 99 per cent of their customers referred by financial advisers.

Its core business is enhanced annuities, which give pensioners higher returns on their retirement savings as its products taken into account medical conditions and lifestyle choices which shorten life expectancy.

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o