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Moving into aged care is a major life transition. It’s not just about adjusting to a new environment—it’s also about managing emotional, logistical, and financial changes. For many Australians, this step can feel overwhelming, and it’s easy to understand why. Aged care decisions are often tied to complex financial arrangements and long-term implications, which makes it crucial to plan ahead. By pre-planning and seeking aged care financial advice, you can make informed choices that safeguard your financial future while ensuring you or your loved one receives the best care possible.
So, where do you start? Knowing the right questions to ask aged care homes and your financial advisor is the key to navigating this process with confidence and clarity.
What Is Aged Care?
Aged care in Australia refers to support and services designed to help older people with daily living, healthcare, and other needs. This can range from in-home care, where assistance is provided within a person’s home, to residential aged care, where individuals live in specialised facilities offering round-the-clock support.
Understanding the types of aged care available is essential, as this will influence your financial decisions. Broadly, aged care includes:
- Home care: Assistance provided at home, such as cleaning, cooking, or nursing services.
- Residential aged care: Full-time accommodation in a care facility.
- Respite care: Short-term care, often for caregivers needing a break.
- Specialised care: Services tailored to specific conditions, like dementia care.
Once you’ve identified the type of care required, the next step is to tackle the financial side. This is where a retirement financial planner or aged care specialist comes in handy.
Top Questions to Ask Your Financial Advisor Before Entering Aged Care
To make the transition smoother, here are some key questions to ask:
1. How Much Will It Cost Me?
Aged care costs vary widely depending on the type of care, location, and services provided. Your financial advisor can help you understand fees, including:
- Basic daily fees: Covers living costs like meals and laundry.
- Accommodation costs: For residential care, this could be a lump sum or ongoing payments.
- Additional services fees: For extras like private rooms or special activities.
Getting a clear picture of these costs is essential to avoid unexpected surprises.
2. Can We Afford It?
Aged care is a significant financial commitment, and it’s natural to wonder how it will impact your savings and assets. A financial advisor can review your current financial position, assess your eligibility for government subsidies, and create a plan to ensure you can comfortably manage these expenses.
3. What Should I Do with My Home If Moving into Residential Care?
For many, the family home is their most valuable asset. Deciding what to do with it—sell, rent, or keep it—requires careful thought. Your financial advisor can guide you through the pros and cons of each option, taking into account tax implications, aged care costs, and family considerations.
4. What Will Happen to My Pension Entitlements?
Entering aged care may affect your eligibility for the Age Pension. Questions to ask include:
- How will my assets and income be assessed?
- What impact will this have on my pension?
- Can I still receive government benefits while in care?
Your advisor can provide tailored advice to maximise your entitlements while meeting care costs.
5. Are There Tax Implications I Need to Be Aware Of?
From the sale of assets to ongoing care payments, aged care decisions often come with tax consequences. Understanding these implications upfront can help you avoid unnecessary costs and make informed decisions.
6. What Are the Best Aged Care Options for My Financial Situation?
Every person’s circumstances are unique, and the best solution depends on your goals and financial position. Your advisor can help you weigh up different options, balancing affordability and quality of care.
7. What Happens If My Circumstances Change?
Life is unpredictable. Illness, inheritance, or market changes can all affect your financial situation. Ask your advisor about creating a flexible plan that adapts to changing circumstances.
8. How Can I Plan for Future Generations?
For many families, leaving a legacy is just as important as funding aged care. A financial advisor can assist with estate planning, ensuring your wishes are honoured while protecting your loved ones’ future.
Why Professional Advice Matters
Navigating the complexities of aged care requires expertise. Seeking guidance from a retirement financial planner ensures you’re not just making decisions for today but also securing your long-term financial wellbeing. Inovayt’s team of financial advisors can provide the tailored advice you need, helping you tackle these questions to ask aged care homes and your financial advisor with confidence and clarity.
For more information on aged care financial advice, get in touch with Inovayt today. We’re here to guide you every step of the way, ensuring your transition into aged care is as smooth and stress-free as possible.
Need more help? Explore our range of services, including aged care financial planning, and take the first step towards peace of mind.
