Meeting the costs of care

Andrew Dilnot’s long-term care proposals will have significant consequences for the UK. He has been tasked with finding a funding solution for the care needs of our rapidly growing elderly population. This issue is not unique to the UK. As a recent OECD report pointed out, in 1950, less than 1% of the global population was aged over 80 years old. By 2050, the share of those aged 80 years and over is expected to increase from 4% in 2010 to nearly 10% across OECD countries. What is unique is Andrew Dilnot’s solution which is a limited liability model. What does it mean? In a nu...