Aged care in Australia - have you been affected yet?
We’ve all heard the saying by Benjamin Franklin: “In this world nothing can be said to be certain except death and taxes.” I’m sure you would agree that this quote is as true today as it was in Franklin’s day when he first penned it in a letter. While a touch on the morbid side, my good news reminder to you is that implementing sustainable life insurance can help you minimise the financial impact of both of these certainties.
Now onto the topic of aged care in Australia. This is a topic that my own family has had recent personal experience. This recent personal experience has reinforced to me that that looking into the costs and legislation associated with moving an elderley person into care can be quite complex and requires careful financial planning. It also reminds me of an earlier post from 2007 : “A Lesson from Home and Away - Sunset Planning“. A balance is also required, as often is proven and observed, the best outcome financially may not be the best outcome emotionally.
With an increasing proportion of the ageing population entering the aged care bracket, the demand for advice continues to grow. Whilst I am most passionate about working with young family’s and helping them prosper along their life’s journey, I feel a moral obligation to ensure the baby boomer group (born between 1946 - 1966) who will be entering the over 65 age group between 2011 and 2031 have an increased awareness of the need to seek and value good advice, not just for themselves but also for their parents who walk this path before them.
Statistics from the Australian Government Treasury paper “Australia’s Demographic Challenges, 2004″ indicate that at present 13% of the population (approx 2.8 million people) is aged 65 years or over and this is expected to increase to 25% over the next 40 years.
For some of these ageing baby boomers, it may mean looking into alternative accommodation such as aged care homes and other care arrangements. The decision as to which type of accomodation or care arrangements you require may initially be based purely on lifestyle choices. In the time thereafter your need for assistance with daily living activities as it becomes harder to manage these things on your own may become the dominant factor.
If you require assistance with daily living activities, one of the hardest desicions you may have to make (for yourself or an ageing loved one) is whether to remain in your home or move to a hostel or nursing home. If you remain in your own home, there are various community programs available which may help you. On the other hand, if you require accommodation in an aged care facility, you will need to take into account a variety of financial, legal and social security issues.
There are many changing factors that need to be considered when entering an aged care facility. I encourage you to work with a Financial Adviser and other professionals to liaise and assist you with:
- understanding accomodation bonds
- accommodation fees and charges
- maintaining the Age Pension or other social security entitlements
- whether to keep or sell the family home
- structuring income and assets to meet ongoing costs of aged care
- minimising tax and lowering fees
- estate planning needs such as Wills and Powers of Attorney
A trusted financial adviser can work through the different options available, explain complex aged care planning issues and help individuals to achieve their best outcome.
Remember, the difference between no advice and valued advice can be the difference between the family needing to subsidise the costs or not.
Where to from here?
- Contact us
- Get more information about an Educational Forum for you and your friends
- Register and receive regular email updates