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Wealth

Aged Care – What you need to know

The possibility of moving into an aged care facility can be a complicated and emotional process. With the spiralling costs of aged care today and the emotional burden that this time brings, establishing a planned entry is a critical issue. Having good financial advice can make the transition easier, help you understand the process, and help minimise the costs.

The costs for aged care are increasing and with an ageing population we all need to think more carefully about how we will be affected and how to access the help we need. Currently, more than two million people in Australia are aged 70 and over and approximately 45% of these will use aged care services. The cost for Government is estimated to double by 2049/50 as a percentage of our economy (as measured by our Gross Domestic Product – GDP). This will be more money than the Government’s budget for defence or education. The increasing cost of aged care is shown in the graph below:

Source: Intergenerational Report, 2010

Whether considering options for yourself or deciding how best to help someone close to you, aged care is a complex area and requires careful thought. The uncertainty surrounding where to move, keeping or selling the home, how much it will cost, and where the money will come from, can be overwhelming and stressful. The image below outlines key elements of the decision making process.

How you plan for aged care and the decisions made can have a significant impact on your lifestyle and comfort, your entitlement to the age pension and the fees paid to access aged care services. The support of a qualified Aged Care specialist is integral to help you make informed choices about aged care and understand what the financial impact may be. The various fees and costs can be seen in the following diagram:

Lifewealth’s Aged Care advice service focuses on tailoring our approach to your needs, informing you of the necessary steps and providing you the power to take control of the financial decisions that need to be made. Our established referral network in the Aged Care environment, modelling technology to analyse your situation, as well as specialised ongoing professional training enables us to develop a plan that is right for you and your family.

It is best to seek advice sooner rather than later as the right advice can help avoid costly mistakes. The more time we have to prepare the better, so please call our office today and in the meantime, please download your free copy of our guide “Aged Care – what you need to know”.

Image Credits  |  Photo by Tiago Muraro on Unsplash