This paper is concerned with the current and future financing of long-term care (LTC). This is defined as the provision of nursing and care services to those adults who are incapable, to some degree, of looking after themselves, but excluding short-term convalescent care. The current position is summarised, covering the demand and supply of LTC, how it is currently financed, new developments and consumer attitudes. The paper then goes on to consider future developments. Possible patterns of future demand, covering likely needs and costs are given. Consideration is then given as to how future demand may be financed.
The paper discusses some of the initiatives that might be undertaken to encourage proper planning by both the State and individuals and concludes that the actuarial profession should have a significant role to play in communicating the issues and evaluating solutions.