Nursing home care is one of those things we place in the too hard basket, along with estate planning, personal insurance and all the other issues that remind us of our mortality!
However, the fact is that residential care is currently provided to around one in every ten Australians aged 70 and over.
Almost 10 per cent of our population is aged 70 and over, and as baby boomers reach this age group, the number is expected to double. As our population continues to age, Australians will become increasingly more reliant on aged care.
Despite the one in three chance that every person reaching the age of 70 will need to enter high care, we generally don’t consider this when planning for the future.
Once in care, a number of costs will need to be met, including basic daily care fees, income tested fees and accommodation payments. Depending on residents’ status as pensioners and non-pensioners, their level of assets and income will need to be considered. Another financial decision one may face will be whether to sell the family home.
So, if you are in the position of helping a loved one into care, or considering care for yourself, you should start planning now:-
1. Review a number of nursing homes
2. Place your name down for your first, second and third
choice, and
3. Involve your financial adviser, so that when the time comes the transition will be free of financial worries.
Please remember that residents in care not only need to meet their fees, which are almost always higher than their age pension entitlement, but they also need funds for everyday life. Having an income to cover simple things like haircuts, newspapers, outings and so on is important in creating a sense of continuing independence, especially for people living in low care facilities. With the right financial plan in place this can be achieved.
For more information about our aged care offer, please call our Rosny office on 6282 2822.
