A new report has called for the adoption of measures to fund long-term care for the elderly.

The report by a joint working party of the Irish Association of Pension Funds, the Irish Insurance Federation and the Society of Actuaries in Ireland, estimates that the total annual cost of longterm care for the elderly will triple from £877 million to £2.7 billion in 30 years. The numbers requiring longterm care will increase from 103,000 to 176,000 in Ireland over that period, according to the report.

In the Republic, the number of people over 75 is expected to increase by more than 70 per cent over the next 30 years while the number aged over 85, who typically have substantial daily care needs, is likely to increase by 90 per cent.

"There is also the very real human cost that many people retiring now are so concerned about funding possible future long-term care that they are afraid to draw on resources, saved over their working life, which should really be used to help them enjoy a well-deserved retirement," according to IAPF chairman Mr Paul O'Flaherty.

The report estimates that around two-thirds of care is currently provided on an informal basis, largely by family and friends. Meanwhile, AIB has launched a £50 million development fund for the nursing home sector.

The fund aims to provide part-finance for capital investment in nursing homes, to restructure existing facilities and to renovate and refurbish facilities. A minimum of £20,000 must be borrowed from the fund and the monies will be lent at a rate of interest of between 7 per cent and 7.5 per cent.