Planning ahead for aged care for you and your family
The number of Australians over the age of 70 is expected to reach nearly four million in the next two decades, which means that aged care will be an issue that will affect an increasing number of families. It’s important for everyone to understand how the aged care system works, not just older Australians, as anyone with ageing parents may need to navigate this complex system on short notice.
Many individuals will make plans for their retirement living, such as staying in their current home with support from loved ones or caregivers, moving into a retirement community, or requiring higher levels of care.
Support from the government
The government offers significant financial assistance for aged care, and eligibility for this support is determined by Aged Care Assessment Teams (ACAT). In addition to determining the level of care needed, ACATs can also help find a suitable aged care facility. Many people prefer to choose their own facility, and it is advisable to visit several options. Keep in mind that available places may be limited, so it may be necessary to apply to multiple establishments.
The Cost of Aged Care Services
Individuals are typically expected to contribute towards the costs to receive aged care services. The amount of this contribution is determined by factors such as income, assets, and pensioner status. Fees can include a mix of means-tested accommodation and care fees, a basic daily care fee, and fees for additional services. These fees are updated twice a year in line with pension adjustments. Those receiving care have the option of paying their accommodation fee as a refundable deposit or a regular payment similar to rent.
Not all needs are the same
The need for aged care can sometimes arise unexpectedly, such as after a stroke or a broken hip. This sudden transition can be stressful, especially with the overwhelming options of facilities and the complicated funding arrangements.
Planning and communication within families can help reduce the emotional distress caused by ageing and the need for care. The My Aged Care website and the Aged Care Information Line are available to provide guidance and support.
It is important to have open and early discussions about the process to facilitate a smooth transition to Aged Care. Planning ahead for aged care and gaining a thorough understanding of the process will greatly assist in making the transition easier for all involved.
Important information: This document has been prepared by Aged Care Financial Advisers, ABN 91 600 073 630 Authorised Representative of Lifespan Financial Planning Ltd AFL 292892, based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Aged Care Financial Advisers makes no representations as to the accuracy or completeness of the contents.