Navigating the Maze of Aged Care Finances: Tips and Tricks

Making decisions about aged care finances can be fraught with emotional and financial consequences.
We have put together a list of some common mistakes and how to steer clear of them – and also how to get advice to get the best outcome for your loved one. These tips are quite general but can have a big impact on the end result.

  1. Don’t Assume Aged Care Homes Are Cheaper Than Home Care
    It’s a common misconception that moving into an aged care home is more affordable than
    staying at home with care services. However, the reality can be quite different, with residential
    aged care potentially costing tens of thousands of dollars more. Before making a decision,
    carefully assess the financial implications.
  2. Plan Ahead
    Procrastination can be costly when it comes to aged care finances. Waiting until a crisis occurs can lead
    to rushed decisions and limited options. Planning ahead allows you to explore different care
    options, such as respite care, and make informed choices about your future.
  3. Know the Costs Before Moving
    One of the biggest mistakes is moving into aged care without fully understanding the costs
    involved. Whether you qualify for government subsidies or need to cover the full cost yourself
    depends on your financial situation at the time of admission. Take the time to assess your
    finances and seek advice if necessary.
  4. Think Twice Before Selling Your Home
    While the Refundable Accommodation Deposit for aged care can be substantial, rushing to sell
    your home to fund it may not be the best decision. Consider the benefits of retaining your home,
    such as pension exemptions and capped asset values, before making a move.
  5. Avoid Pressure on Family to Pay the Deposit
    Feeling pressured to cover the Refundable Accommodation Deposit, some families may turn to
    children or relatives for financial assistance. However, this can impact means-tested care fees
    and lead to complications with refunds. Explore all options and seek professional advice before
    making any payments.
    Consulting with a specialist adviser can provide clarity on your options, help you understand
    the costs involved, and guide you towards the most sensible financial approach. It’s an
    investment worth making for peace of mind and financial security in your later years. You can contact us here.

Leave a Reply

Your email address will not be published. Required fields are marked *