Unfortunately this is often the case if the time comes to move into aged care. Moves to aged care can occur suddenly and can be rushed and emotionally stressful times. However, with a pre-determined plan in place and the resources to achieve it, this difficult situation can be more easily managed.
Did you know?
- At age 65, a person’s chances of needing aged care during their lifetime is 48% for men and 68% for women
- Accommodation costs are often $350,000 - $550,000 or upwards depending on the type of aged care facility required
- Planning for your potential future aged care needs can give you piece of mind and control over your finances as you get older
You may be thinking about your own potential needs for the future, or you may be tasked with making decisions for a loved one. With aged care becoming a growing issue for many, getting the right advice is key to ensuring the process is as smooth as possible.
Costs associated with aged care are rising and with populations growing older it is important to think carefully about the options available to plan for the future. There are more than 2 million people aged 70 or over in Australia, of which around 45% will utilise aged care services in their life, and many others that will be involved via family members. The amount of government spending on aged care is set to double by 2050, and costs will be higher than education or defence spending.
Source: Intergenerational Report, 2010
The way we plan for aged care and the choices that are made earlier in life can have a considerable impact on your aged care options later on. You must consider factors such as desired lifestyle and comfort, your access to the aged pension, and the fees associated with aged care services. Planning for aged care should start early in life and evolve as you retire to ensure your strategy is up to date and applicable.
Thinking ahead will give you a head start on decisions that will need to be made including:
This article is intended to provide general advice only and has been prepared without taking into account your objectives, financial situation or needs. Therefore, before acting on any information contained in this article, you should consider its appropriateness having regard to your objectives, financial situation and needs.
- Options for remaining in your own home to maintain independence
- Strategies to reduce ongoing costs
- Options for funding entry costs
- Strategies to invest other assets, and
- An understanding of the impact these decisions can make on aged pension eligibility