1. Later Life – Why Care? For financial advisers only – not for retail clients

2. Learning objectives 1. Understand the key drivers for advice on Care 2. Receive an update on the Care Bill 3. Understand the regulatory requirements on advisers 1. Understand the key drivers for advice on Care 2. Receive an update on the Care Bill 3. Understand the regulatory requirements on advisers

3. Agenda A growing market A confused market An under-advised market A ‘risk’ Market A ‘must-have’ market for IFA status

4. An ageing population UK Population 2012 www.neighbourhood.statistics.gov.uk/

5. Over two thirds (69%) of people aged 85 and over in the UK have a disability or limiting longstanding illness. 3.7 million people aged 65+ currently live alone 821,000 people aged 65+ currently have dementia – This is projected to double in less than 40 years A compelling argument Age UK factsheet January 2012

6. A compelling argument Over 85s doubled since 1984 2m over age of 50 will reach 100 10m alive today will reach 100 7,700 “super centenarians” by 2066 Age UK factsheet January 2012

7. Health If nothing is done about age-related disease, there will be over 6 million people with a long-term limiting illness or disability by 2030 People aged 65 now have an average life expectancy of 82-85 years, the last 7-9 years with a disability Age UK factsheet January 2012

8. Agenda A growing market A confused market An under-advised market A ‘risk’ Market A ‘must-have’ market for IFA status

9. A confused market Local Authority Friend Care home DWP GP Solicitor Domiciliary care provider Hospital Only 21% approached their Local Authority for help (ABI Q4 2011) Internet

10. Clarity/Complexity: the £72,000 contribution ‘Cap’ Assumes £700 per week cost of care. Assumes £500 per week local authority rate

11. Agenda A growing market A confused market An under-advised market A ‘risk’ Market A ‘must-have’ market for IFA status

12. An under-advised market Source: Oliver Wyman Research 130,000 new care home residents per annum 14,000 get financial advice 68,000 need of financial advice every year 7,000 talk to a qualified advisor 75,000 privately funded 53,000 Fully self funding 22,000 Partly self funding

13. Agenda A growing market A confused market An under-advised market A ‘risk’ Market A ‘must-have’ market for IFA status

14. Longevity risk 1 in every 8 stay at least 8 years Average stay : 4 years (self-funder) Partnership Data

15. Example - Investment with and without Immediate Needs Annuity Based on £180,000 available funds, fees of £23,010, escalating at 5% a year for Female aged 88. INA purchase price £100,000. Investment growth 5% pa

16. Agenda A growing market A confused market An under-advised market A ‘Risk’ Market A ‘must-have’ market for IFA status

17. "My question to the FSA is that, if it [LTC insurance] is an investment product that falls under adviser charging rules, are you saying to be independent everyone has to do the qualification? Fay Goddard, Chief Executive of the PFS 21/2/12 IFA Online

18. FSA RDR Guidance paper February 2012: ‘Independent’ does not mean you must be qualified BUT long term care clients have to be identified If no qualification internally, must refer externally NEVER recommend an alternative where long-term care is suitable but qualification not held A ‘must-have’ market for IFA status

19. Agenda A growing market A confused market An under-advised market A ‘risk’ market A ‘must-have’ market for IFA status

20. Learning objectives 1. Understand the key drivers for advice on Care 2. Receive an update on the Care Bill 3. Understand the regulatory requirements on advisers 1. Understand the key drivers for advice on Care 2. Receive an update on the Care Bill 3. Understand the regulatory requirements on advisers

21. Thank you for attending Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261), and Partnership Home Loans Limited (registered in England and Wales No. 05108846). Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Partnership Home Loans Limited is authorised and regulated by the Financial Conduct Authority. The registered office for both companies is Sackville House, 143-149 Fenchurch Street, London EC3M 6BN. No liability or responsibility is accepted by Partnership for the use or otherwise of the statements in this literature in any individual situations regarding the giving of advice. The Financial Adviser remains solely responsible for ensuring the advice provided is appropriate and meets all legal and regulatory requirements. LTC1220 09.13 V1