Fewer than one in four homeowners are saving for their future care needs, despite more than half fearing they could lose their homes to pay for care in later life, research has found.

A survey commissioned by the Independent Age charity found more than 143,000 older people – more than one-third of the 421,000 currently in residential care – are likely to face costs of £100,000 or more to pay for their care. Such costs have been described as “catastrophic”.

In recent years, the government has proposed introducing a cap to prevent people from having to pay such amounts. However, separate research by Grant Thornton UK LLP, also commissioned by Independent Age, has revealed a cap would fail the majority of older people in care homes.

Instead, in its report, the charity has called on the government to introduce free personal care for everyone.

Free personal care would eliminate costs for people receiving care at home. For those in residential settings, it would reduce costs by more than one-third – leaving them to pay non-care related costs including bed, board and lodging.

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