In the Financial Times Adviser article “Retirement reform must be linked to LTC,” Samantha Downes talks about Just Retirement’s push for annuities. Pension provider Just Retirement wants any pension reform by the government to include long term care needs. While they have started to phase out the default retirement age and Just Retirement is pleased with that, the provider hopes that pension reform will include rules that allow an immediate annuity to take over long term care costs when they arise. As people retire later in life and live longer, these long term care provisions are even more important since the longer you live the more likely you will suffer deteriorating health.
As people’s health changes, their need for income increases with these new and quite large health care costs. By the government reviewing pensions and making it easier to use a 401k annuity transfer or other type of annuity towards long term care, people should be better suited to meet their own needs in retirement. A large population around the globe is aging and nearing retirement age. In order for them to live a comfortable life they will need any long term health care costs to be covered without draining their savings. Government regulation already in action should take these needs into consideration as plans move forward.