It found 29% of people in this age range currently planned to use the money from their property to fund care compared to 19% a year ago.

At the same time fewer people surveyed by Key in its second report into care funding were planning to use retirement income or their savings and investments.

The later life adviser found just 34% of over-55s – compared to 44% in 2019 – believed their savings and investments would help fund care. Meanwhile 30%, which compares to 40% in 2019, said they would use pension income.

Only 4% of those questioned said they would prefer to go to a care home, however, with the ‘overwhelming’ majority saying they hoped to stay in their current home or move to a manageable property.

Will Hale, CEO, at Key said: “When you speak to people, you find that the vast majority are keen to receive care and support in the comfort of their own home but struggle to know how, or how best, they might meet these costs.

“With the recent economic turmoil, confidence in savings and pension income has fallen while more people are looking to the value tied up in bricks and mortar to finance care.

“Getting good advice and understanding what resources you have to draw on is important – and making sure you factor these potential costs into your retirement planning is vital.”

Key has also called on the government to create a cross-party consensus on long-term care reform and funding after it quizzed local councils and found there had been decreases in financial assistance for those needing long-term care.

Hale added: “At the same time as councils are under pressure, over-55s are waking up to the reality that they may well need to pay for all or some of their care in later life.

“This has created the perfect storm and it is vital that the government focuses on setting out clear plans for reaching a cross-party consensus on social care, and consider long-term reform and funding of the care system. “