Wealth Connexions gives insight into how your savings and investments could be impacted when moving into aged care.
Planning to move into an aged care facility can be difficult, stressful, and confronting – but it doesn’t need to be that way. At Wealth Connexions, we understand the financial struggles that Australian’s face, especially when planning for retirement, and later, aged care. Our aged care financial advisors will be able to assist you in having a better understanding of aged care while managing your savings.
The myths of investments in aged care
There are false speculations about what is needed to enter an aged care facility, the bills that follow, and where your savings will go after entering an assisted living home. There’s confusion amongst preparing retirees where once you enter an aged care home, your money, investments and property aren’t your own; which is not true. The investments you make before entering an aged care home will remain yours and completely untouched until you choose otherwise. Unless your investments are managed poorly, moving into an aged care home won’t impact this. This is why, if you’re unsure about planning for retirement or aged care living, that you seek advice from an aged care financial advisor to ensure that you’re being well looked after today and in the future.
What our aged care financial advisors recommend
While investments won’t be impacted by aged care living, you can expect to be dealt with a hefty sum for your living arrangements in an aged care facility. On average, you can expect to pay $40,000-$50,000 AUD a year. This is where your past savings and investments come to use, to assist you with the payment of aged care living. It’s important to note that there are a few ways of processing payment to an aged care home. You could choose, for example, to pay a higher accommodation bond. When the Centrelink means test is conducted, the accommodation bond is not included, which could mean you are supplied with a higher pension rate and/or a pharmaceutical benefits card, which lowers the costs of pharmaceutical products and will save you money in the future. Another option is that you could purchase a funeral bond. A funeral bond is also excluded from the Centrelink means test. This means you could take out the maximum amount possible to assist you in lowering your assets, which will in turn lower the daily or monthly cost of aged care living. Another opportunity is for you to purchase an aged care annuity. This is where you provide funds to an insurance company, which will then assist you with frequent funds for the rest of your life.
All of this may be a lot to process and understand, but our aged care financial advisors are always willing to help and assist you. At Wealth Connexions we listen to your goals while taking your savings and income into consideration. We want to see you succeed, which is why our aged care financial advisors make individual financial plans, goals, and advice to suit you and your needs. By seeking support from an aged care financial advisor, you will be able to relax by knowing that you’re being well looked after and that your money is in a safe place, while also being prepared for your future needs.