Wealth Connexion outlines the factors you need to consider when preparing to enter into aged care.
The decision to transition into aged care can be a stressful, yet necessary event in an individual’s life. Whether you yourself are entering aged care, or you are assisting a family member looking into options for care in the future, it’s crucial to understand the financial impact of transitioning into aged care.
For those looking for aged care financial advice to help navigate this transition, Wealth Connexion shares four ways to get started on ensuring your readiness on entering this next stage.
Understanding the Costs of Aged Care
The cost of aged care varies depending on your personal situation. Aspects that can affect the cost of your aged care can include:
- How many services/types of services you need
- Where you receive care
- Fees charged by the care provider
- Your financial situation
For example, you will be asked to pay a basic daily fee, which the Australian Government has capped at 85 per cent of the annual single basic Age Pension. If you opt for a nursing home to provide care, you will also need to pay an accommodation fee, which can be paid in a variety of ways. Other kinds of aged care can incur other types of costs, often with different degrees of expense depending on your needs.
Understanding the costs involved in selecting what type of care suits you can be confusing. Thus, it is best to seek trustworthy aged care financial advice from experts.
Assessing Your Financial Situation
Your financial situation plays a crucial part in transitioning into aged care. You will be assessed for certain costs against your income and assets. Additionally, getting your finances in order and understanding any costs, debt, and additional income you are currently earning goes a long way in understanding what aged care will look like for you. Assessing your finances will make the transition into care much smoother.
Government Support and Funding Options
When it comes to aged care, there are many options for government support and funding available for people in many different financial situations. You may qualify for things like government-run aged care, financial hardship assistance, or the Commonwealth Home Support Programme. Professional aged care financial advice will go into depth about what is open to you in terms of mitigating costs.
Planning Ahead and Seeking Professional Advice
Transitioning into aged care with financial readiness involves careful planning that extends beyond just considering regular costs and income; it also entails accounting for unexpected financial emergencies that may arise during this phase of life. This is add complexity to your experience in developing financial readiness, so it’s important to seek professional aged care financial advice.
Wealth Connexion are accredited Aged Care Financial Advisors, ready to help you transition your finances smoothly into the next stage of your life. Read about our aged care financial advice services here.
