What is something you can do now that your future self or loved ones will thank you for? Plan for your future and get aged care. Ideally, we’d be fit as a fiddle and still manage to navigate normal life in our 80s, which is a possibility. However, no one knows exactly what the future holds, so it’s best to plan for every possible outcome for your old age.
The transition from living an independent lifestyle to becoming increasingly dependent on loved ones or moving to an aged care facility is challenging and needs to be dealt with tactfully. This is where speaking to someone, like a wealth advisor, who can offer aged care financial advice comes in. But how do you know when the best time is to seek aged care financial advice?
In this article, we’ll discuss some key signs that you might need to get some aged car financial advice from a professional.
What Is Aged Care Financial Advice?
Aged care financial advice is a specialised field in financial advising that focuses on helping families and individuals optimise their situations and resources to provide the best quality of life in their old age.
Aged care often covers issues like helping you choose which aged care facility to send your loved one to, examining fee structures and affordability of care, and deciding whether to keep or sell the family home.
3 Signs You Need Aged Care Financial Advice
With the increase in life expectancy thanks to innovations and modern medicine, most of us are going to grow old – it’s inevitable. Facing a reality where you’re going to one day need to rely on others is a tough pill to swallow. The sooner you put a plan into action, the better your future lifestyle should be.
Some people have already put plans into place and seem to have it all sorted out, and others need some assistance when facing the future – either way, it’s always a good idea to seek help from the professionals. Here are some signs that you should see someone about getting aged care financial advice:
1. When you’re unsure of where to start planning
Those who fail to plan for their old age care can expect to face uncertainty about who will look after them one day. Meeting with a wealth advisor who specialises in aged care finances may help give you the security you need in the future – whether it’s for you or your loved ones.
Meeting with a wealth advisor can help you gain confidence in what life will look like in your old age and help you make the most of your circumstances and resources to help you fund your future.
2. When you are unsure of aged care costs
Rather than digging your head in the sand and remaining unaware, you should look into what aged care will cost. If you don’t know the expenses, realistically, it’s almost impossible to plan for your future. Some of the main fees you can expect to pay for aged care include a basic daily fee, a means-treated care fee, and accommodation and additional services.
3. When you’re unsure of available funding options
Funding your aged care program is easier said than done. It’s one thing to know how much money you need and another thing altogether to acquire the finances. If you’re in a situation where you’re feeling overwhelmed about how you’re going to afford aged care, the best course of action is to make an appointment with the Department of Human Services (DHS).
This meeting will give you vital information regarding how much the government will assist you with your basic daily fee and means-tested care fee through a formal income and assets assessment. Once this is cleared up, you can meet with your wealth advisor to identify other funding options available to you to help fund your estate planning and retirement.
For those who are unsure of how you’re going to fund aged care, you’ll be surprised to learn that most of it can be sorted by:
- Dividing the costs among family members
- Using a reverse mortgage, etc.
- Deduct the Daily Accommodation Payment (DAP) from the Refundable Accommodation Deposit (RAD)
- Selling off investments
- Selling the family home
Final Thoughts
In order to prepare for your future or for that of your loved ones, it’s imperative to discuss your wishes and financial requirements with your family, wealth advisor and preferred aged care facilities. Having these conversations and looking into your available resources, as well as the aid you’ll receive from the government and loved ones, can help you understand the amount you’ll need to save for aged care as well as help you build confidence in your future.
