Wealth Connexion shares aged care financial advice, eligibility and services available to you.
When planning your finances for aged care, there are many aspects to consider—for example, pensions, superannuation, and retirement planning. So, it’s beneficial to seek independent financial advice before deciding how to pay for your aged care.
Knowing where to start can be confusing, but there is help available. There are organisations, services, and tools that can offer guidance and support.
Where to start
Firstly, you need to think about what is right for you. You might want to stay in your own home but need assistance with domestic chores, or it might be time for you to start looking at options for longer-term residential care.
Let your family and friends know what you want. This will make sure they’re able to give you the right care when the time comes.
Care and help at home
The government provides subsidised home care to help you stay in your own home for as long as possible. This is designed to assist with everyday tasks like shopping, cooking and transport, as well as with personal and nursing care.
There are two types of home care:
- entry level care — Commonwealth Home Support Programme for people who can manage but need support with a few tasks
- more complex care — Home Care Packages for people who need more support on an ongoing basis
What you pay
If you can afford to do so, you may have to pay:
- a basic daily fee— a standard amount that everyone has to pay
- an income-tested fee— an amount that will vary depending on your income and assets
Residential aged care
If you’re no longer able to live at home, you may choose to move to an aged care facility, where care is available 24 hours a day. This can be a short-term stay or a permanent move.
What you pay
If you can afford to do so, you may have to pay:
- a basic daily fee— a standard amount that everyone has to pay
- an income tested fee— an amount that will vary depending on your income and assets
- accommodation payment — an amount for your room, based on its quality, location and features
The accommodation payment is the biggest cost. You can pay this as a:
- bond or lump sum up-front, which is refundable (called a Refundable Accommodation Deposit, or RAD)
- daily amount(called a Daily Accommodation Payment, or DAP)
- combination of RAD and DAP
Need help with Aged Care Financial Planning Strategies? Click here.
What to do with your family home
If you decide to move to an aged care facility, you’ll need to consider what you’re going to do with your family home.
You may be wondering whether it’s better to sell your home to pay the bond (RAD), or to rent it out to help pay the daily amount (DAP).
It’s a good idea to seek out professional financial advice to work out whether selling or renting your home is the best option for you.
How to prepare
When planning for life after retirement, we often tend to focus on saving for a comfortable standard of living and travel. It can be difficult to consider anything other than a happy and healthy journey as we get older, even if the reality may be different.
Wealth Connexion can help with retirement planning, wealth management, savings planning, superannuation, and portfolio administration.
Talk to us today to discuss aged care financial planning strategies.
