Royal London has floated the idea of creating a new financial product that could be 'bolted on' to a person's income drawdown arrangements to help pay for care.
In its paper Is it time for the care pension?, the insurer called on the government to introduce policy changes that would enable the creation of a new at-retirement product that combined existing income drawdown arrangements with insurance against future care costs. Following the introduction of pension freedom, the paper said, growing numbers of people go into retirement with a pot of money from which they draw an income through retirement. It went on to suggest care insurance could be ‘bolted on' to income drawdown arrangements - either in the form of a regular premium or a one-off...
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