The only topic people don’t like talking about more than death is getting old and becoming incapable of looking after oneself.
With the Australian population over the age of 70 likely to reach nearly four million in the next 20 years, aged care is an issue that will be of increasing concern to a growing number of people. It is not just older Australians who need to understand how aged care works – anyone with aging parents may find themselves having to understand a complex system at very short notice.
Many people will make private arrangements for their retirement living. They may stay in their own homes, perhaps with help from family or other carers. Some will move into a retirement village and retain their independence. For others, a time will come when they need a higher level of care.
The government provides substantial assistance with the costs of aged care, and eligibility for government support is determined by Aged Care Assessment Teams (ACAT). Aside from making an assessment of the need and level of care required, the ACAT may also be able to assist in finding an appropriate place. Most people prefer to make their own choice, and it is worthwhile visiting a number of facilities. Quite often available places are subject to existing vacancies so it may be necessary to apply to a few establishments.
In most cases a contribution towards the costs of aged care is required. Contributions vary and depend upon income, assets and pensioner status. Fees may include a combination of means-tested accommodation and care fees, a basic daily care fee and fees for extra optional services. Fees are revised twice yearly in line with pension revisions. Care recipients have the option of paying their accommodation fee as an upfront refundable deposit or a rent-style periodic payment.
Not all needs are the same
Sometimes the need for aged care can arise at very short notice. For example, a stroke or a broken hip may be the trigger for an immediate move. The stress of entering aged care can be considerable and this isn’t helped by the overwhelming range of facilities on offer and the complexity of funding arrangements.
The emotional upheaval on all parties can be eased by early planning and open discussion within families. A good place to start is the federal government’s My Aged Care website www.myagedcare.gov.au.
How can we help?
Perth Aged Care Financial Advisers is the specialist aged care division within Aspire2 We have a number of accredited advisers who can assist you through the complex world of aged care and provide you with specialist advice on:
- Ways to cover your accommodation costs
- Your entitlements to government pensions and other related benefits
- How to minimise the costs and tax consequences of aged care
And although nobody enjoys talking about it, planning for aged care is the best course of action.
My Aged Care website www.myagedcare.gov.au