Navigating the aged care system can feel overwhelming – especially when finances come into play. One of the most common concerns we hear is: “Can I afford aged care?” The good news is, the Australian Government helps fund residential aged care, making it accessible to everyone who needs it. However, the costs can vary greatly depending on the facility, your assets and your income. That’s where expert financial advice becomes essential.
Where to Start: The Aged Care Assessment
Before moving into aged care, you need to be assessed by an Aged Care Assessment Team (ACAT or ACAS in Victoria). Once you’ve been approved for care, it’s the perfect time to speak to a financial adviser.
At Aged Care Specialists Vic, we help you:
- Maximise the government funding you’re entitled to
- Understand your payment options
- Avoid costly financial mistakes
Many families panic at this stage – worried they’ll have to sell the family home or that care is out of reach. In truth, you may have more options than you realise.
How Much Will Aged Care Cost?
The cost of aged care depends entirely on your personal financial circumstances. To get an estimate, you can use the My Aged Care fee estimator.
Important: The calculator is only a guide. We strongly recommend speaking with a qualified aged care financial adviser to explore all strategies for reducing fees and protecting your assets.
What if I Can’t Afford the RAD (Refundable Accommodation Deposit)?
Many people are concerned they won’t be able to afford the RAD, which can be hundreds of thousands of dollars. Some families consider lending money between generations – but this isn’t always necessary.
There are flexible payment options:
- Pay the RAD as a lump sum
- Pay via Daily Accommodation Payments (DAP)
- Or a combination of both
You have 28 days after entering care to make a decision. Speaking with an adviser can help ensure you make the best financial choice for your situation.
What About the Ongoing Aged Care Fees?
In addition to the RAD or DAP, there are other fees to consider:
- Basic daily fee: 85% of the age pension
- Means-tested care fee: based on your income and assets
- Extra service fees: for optional items like hairdressing or premium meal options
There are annual and lifetime caps on these fees:
- Annual cap: $34,311.23.
- Lifetime cap: $82,347.13. (as of May 2025 – these amounts are indexed)
Knowing how to structure your finances can help reduce or even eliminate some of these fees. That’s where professional advice can make a real difference.
When Should I Get Aged Care Financial Advice?
Before making any major decisions such as selling the family home or choosing a care facility, book a consultation. The right advice at the right time can:
- Help you preserve assets
- Reduce fees
- Avoid common aged care pitfalls (which are way too common and costly!)
We help families across Victoria feel confident about aged care decisions. Our advice is personal, independent and designed to protect your financial future. You can contact us here or clicking on the image below.
