Rising costs, independence, and the necessity for proactive financial planning

Recent data highlights a growing concern about the affordability of care and the maintenance of independence in retirement. Research has shown significant worries among UK adults regarding how they will finance care needs and medical expenses in later life.

A ccording to the findings, more than two-thirds (67%) of adults in the UK are extremely concerned about covering the costs of care, whether at home or in a residential facility. Alarmingly, 63% expressed worries about completely running out of money during their retirement years. These statistics underscore the necessity for early financial planning to address these future challenges.

Top priorities for retirees highlight health and independence
When asked to identify priorities for retirement, respondents overwhelmingly emphasised good health (96%), maintaining independence (95%), and ensuring financial security (95%). Furthermore, 92% of individuals highlighted the significance of staying in their own homes as they age[1].

This desire for independence highlights the struggle many face when adapting their homes to accommodate evolving physical and medical needs. More than three-quarters (78%) of those surveyed valued the ability to make home modifications, such as installing stairlifts or walk-in showers. However, over half admitted to feeling anxious about how they would fund such renovations should their health deteriorate.

How lifetime mortgages offer a solution
For many adults in the UK, the equity in their homes represents a significant yet often untapped resource. Lifetime mortgages, which enable homeowners to access a portion of their property’s value while retaining full ownership, offer a potential solution.

By releasing equity tied up in their homes, retirees can secure funds to cover essential expenses, ranging from medical bills to in-home care or home adaptations. This financial tool enables individuals to modify their surroundings in a way that supports independence, without the pressure to sell their home or downsize.

Rising costs, public health strains, and financial planning
The concerns highlighted by the research are influenced by rising living costs and overburdened public health services. These factors increase individuals’ anxieties regarding retirement, making it increasingly crucial to pursue solutions at an early stage.

Without a clear plan, individuals may become reliant on limited state provisions or struggle to meet care costs out of their own pockets. The study’s findings indicate that the public in the UK is acutely aware of these risks but may lack the tools to address them.

Taking action to secure your future
Proactive financial planning is not merely a recommendation; it is increasingly becoming a necessity. By exploring options such as lifetime mortgages and collaborating with professionals to assess future needs, individuals can develop a personalised financial strategy that protects their retirement years.

Source data:[1] Unless otherwise stated, the data used in this press release originates from a survey of 4,000 nationally representative UK adults conducted for LV= by Opinium in March 2025.

This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. The value of your investments can go down as well as up, and you may get back less than you invested.