Six in 10 people aged over 45 underestimate the cost of self-funding a place in a residential care home, according to new research from Just Group.
The findings highlight a significant gap in public understanding of later-life care costs and reinforce calls for the Government to improve guidance and support for those planning their future care.
The Just Group Care Report 2025, the UK’s longest-running study of social care attitudes among over-45s, found that 60% of respondents believe a year in residential care costs less than £60,000, compared with industry estimates of £66,456 for self-funders.
More than one in four people underestimate the true cost by more than half, with 31% estimating fees of up to £30,000 a year and only 32% believing the cost exceeds £70,000.
The research shows that those who have previously helped arrange care for a loved one are often taken aback by the scale of the expense, with 85% saying they were shocked at the cost.
Stephen Lowe, group communications director at Just Group, said: “Year after year, our Care Report shows people are unprepared for the true cost of care and those who do have experience of the system are left shocked at the level of fees when they come to help loved ones find a residential home.
“With an estimated four in five people aged 65+ likely to require some level of care before they die, millions of families are sleepwalking towards a nasty shock.”
Lowe said a lack of clarity from successive governments about how care is funded has contributed to the problem, alongside public reluctance to plan for later-life care.
He added that delays in implementing reforms mean the Government must act now to help people understand their financial responsibilities.
Lowe said: “Too often people are left grappling with unexpected and large financial costs at a time of crisis.
“Our view is that the Government must support people dealing with the system as it is now, not how it might be in the future, by clarifying its contribution to care costs and creating a ‘Care Wise’ guidance service to encourage people to plan ahead.”
The report forms part of the 13th edition of Just Group’s annual research project and surveyed 2,500 adults aged 45 and over across England and Northern Ireland between August and September 2025.
It highlights how the nation’s lack of preparedness is compounded by rising care costs, continued delays to reform and a growing demand for residential support.
