Thinking in advance about the final phase of our lives, or arranging aged care for our older loved ones, can be very difficult. Complex emotions come into play, and the need to make big decisions, sometimes at what feels like alarmingly short notice, can create high levels of stress and sometimes family conflict.
This can be avoided, or at least greatly reduced, by making plans for aged care funding well in advance of when it might be needed.
Facing the fact even of our own mortality is somehow easier than facing the possibility that we might eventually need some form of aged care. For example, many people arrange life insurance protection for themselves and their loved ones but neglect to plan for their aged care needs.
Yet for most people, aged care in Australia is very expensive. Some aged care facilities require an advance lump sum (effectively a bond) of up to $1 million to pay for accommodation, and then there are the ongoing care costs to be funded from day-to-day cash flow.
When planning for aged care costs, it’s critical to seek professional help – and ideally, as far in advance as possible.
Providing advice on aged care financing is a specialist area. Fiducian’s financial planners are experts at helping their clients navigate this difficult and ever-changing financial environment.
More importantly, they understand the emotional toll that arranging aged care can have, especially if arrangements need to be made at short notice.
Home care packages offer, (via a choice of four levels), more comprehensive support to help older Australians remain in their own home. Depending on the package chosen, Home Care can help with things such as cleaning, meals, transport, personal care and nursing care.
The Federal Government pays most of the cost of Home Care. However, as with all aged care services, people may be asked to contribute towards the cost of Home Care if they can afford to do so. The cost can vary from person to person depending on an individuals’ financial situation and the services provided.
The government’s Aged Care website lists a schedule of fees and charges.
This live-in care is for people who are unable to safely or effectively manage at home with day-to-day tasks, or need constant health care. Residential care includes permanent and respite care.
The total cost of residential care will differ for each resident, depending on their ability to pay and level of assets. The costs may include: