One in three millennials are already saving for care are you ahead of the curve

Financial Planning

One in three Millennials are already saving for care — are you ahead of the curve?

More Millennials are taking later life care seriously than many might expect, with one in three already saving and building it into their plans. But while awareness is growing, uncertainty around costs and affordability remains. Discover what’s driving this shift, where confidence still falls short, and how starting early could make a meaningful difference to your future choices.

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When it comes to planning for later life care, Millennials (those aged between 30 and 45) are often assumed to have time on their side. Retirement can feel a long way off, and care costs even further. But our Lloyds Wealth research suggests a very different picture is emerging.

One third (33%) of Millennials have already set aside savings specifically for care in later life which is more than double the proportion seen in any other age group.

Far from putting it off, many are already taking practical steps. In fact, Millennials are also more likely than others to have built care costs into their retirement plans (29%) and to have explored care funding options (26%). And around 30% have already discussed their preferences with family.

This points to a clear shift in mindset by a younger generation which is shaped by experience, awareness, and a desire to stay in control.

A generation thinking differently

Millennials appear to be more comfortable facing into the reality of later life planning than many might expect.

Our research shows that 45% say they feel comfortable talking about getting older and planning ahead, higher than other age groups. At the same time, they’re less likely to say they would only deal with care if it became necessary suggesting a greater openness to having these conversations earlier and taking a more proactive approach to planning for later life.

This growing openness may reflect what many have already seen. Whether this is through supporting older relatives, hearing about the rising cost of care, or recognising the limitations of public funding.

But that doesn’t mean it’s always easy.

The confidence gap

Despite this proactive approach, there’s an interesting tension in the data.

While Millennials are more likely to plan ahead, they’re also navigating uncertainty. Around half of Gen X (51%) who are aged between 46 and 61, say they are not confident they could afford care, and while Millennials are comparatively more confident, affordability remains a concern across all groups.

This is echoed in the reasons people give for avoiding the topic. Among those who feel uncomfortable, 40% say the costs and financial uncertainty feel overwhelming, while others say it makes ageing feel more real or frightening (35%).

In other words, even for those taking action, the unknowns can still feel significant.

Awareness but not necessarily understanding

Another theme running through the research is a lack of understanding around care costs.

Most people estimate residential care to cost between £501 and £1,500 per week (77%), with only around 16% expecting costs to exceed £1,500. That doubt can make planning feel abstract and therefore easy to postpone.

In fact, the cost of later life care can vary based on the level of care needed and the area of UK you live.

	Residential care	Nursing care	Residential dementia care	Dementia nursing care
Uk average fee	£1,298	£1,535	£1,323	£1564

Source: carehome.co.uk, 09/09/2025

And of course, it’s unknown how long care would be needed for. This results in lots of uncertainty around how to effectively plan for care in later life.

Discover how cash flow modelling could help

Why starting early can make a difference

For those already setting money aside, the benefits go beyond simply building a savings pot.

Starting earlier can mean:

Spreading the cost over a longer period
Giving investments more time to grow (though their value can fall as well as rise)
Having greater flexibility when making decisions later

It also allows care planning to sit alongside other goals rather than becoming something urgent and reactive further down the line.

Turning awareness into action

Encouragingly, Millennials aren’t just thinking about care. They’re also recognising the value of planning conversations.

Around 54% believe talking about care helps people feel more prepared, while 50% say it can reduce stress and uncertainty for loved ones. Many also see the benefit of giving themselves time to consider options and avoid making decisions in a crisis.

When it comes to making planning easier, the research highlights a clear preference for guidance and transparency. Nearly half (47%) say professional guidance would help them weigh up the trade-offs, while others point to tools like cashflow modelling (44%) to visualise future costs and income.

Balancing today with tomorrow

Of course, life is busy and for many Millennials, competing priorities can make it hard to focus on something that still feels distant.

The most common reasons for putting planning off include wanting to focus on living well now, uncertainty about where to start, and concern about making the wrong decision.

That’s why a gradual, flexible approach can often feel more manageable. Planning for care doesn’t have to mean having all the answers today. It can start with simply understanding how it fits into your broader financial picture.

A more confident future

The fact that one in three Millennials (33%) are already saving for care is a powerful signal. It suggests a generation that is not only aware of the challenges ahead, but willing to take steps to address them.

And while no one can predict exactly what the future will hold, having a plan in place can help bring greater clarity, confidence and control.

After all, when it comes to later life care, starting earlier isn’t just about money. It’s about giving yourself more choice, more flexibility, and greater peace of mind for the years ahead.

Source: Attitudes towards planning for later life care research, Lloyds Wealth, May 2026, based on 949 respondents.

Important information

This article is for information purposes only. It is not intended as financial advice.

Any views expressed are our in-house views at the time of publishing. This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without our prior written consent.

Last Updated on 19th May 2026

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One in three Millennials are already saving for care — are you ahead of the curve?

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Why starting early can make a difference

Turning awareness into action

Balancing today with tomorrow

A more confident future

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