How to seek advice on affordability prior to starting the aged care process

How to seek advice on affordability prior to starting the aged care process

Are you curious about aged care costs? Wondering if you will be able to afford to enter the aged care facility of your choosing? 

In Australia, the Federal Government does provide some funding for residential aged care facilities. However, you will likely be expected to contribute towards the aged care costs associated with your accommodation. 

Therefore, it’s important to seek advice on affordability well before you start the process of entering an aged care facility. That’s where a good aged care financial adviser, like the team at Beacon, can help. 

In this article, we’ll outline why you might want to engage an aged care financial planner in order to assess the affordability of aged care for you or your loved one. 

What are the aged care costs? 

The fee structures associated with aged care costs can be difficult to comprehend and every aged care facility is capable of setting their own rates. That being said, there are four different aged care costs that you may be required to pay. 

These aged care costs include; 

    • A basic daily fee. Every resident of an aged care facility must pay a basic daily fee. This fee covers the costs associated with day-to-day services such as meals, cleaning, laundry and facility management. At the time of publishing this article (15/08/2022), the basic daily fee for Australian aged care residents is $54.69 per day 
    • Means tested care fee. This fee is a contribution to your care costs and is determined based on your income and assets so it will vary between person to person. This fee could also potentially be impacted by decisions you make such as choosing to sell your home or keep your home. So always seek professional advice before making any significant financial decisions that may change your financial circumstances.  
    • Accommodation payment. The Accommodation payment is not compulsory for everyone entering aged care as it’s dependent on the financial situations of each individual. Whether you are required to pay this is largely dependent on your financial circumstances before and after you enter aged care and there are many factors that may determine how much you contribute to this, if at all.
  • Additional Services Fee. These fees are only charged if you opt for additional services that your chosen aged care provider offers.  These are services over and above the standard services. These fees aren’t subsidised by the government.

Assessing your affordability before entering aged care is important, because you’ll need to make sure you have adequate assets to pay the ongoing aged care costs, living expenses, and the accommodation payment. 

Fortunately, there are many different strategies that a good aged care financial planner can help you with in order to reduce your aged care costs. This is a complex issue, so it pays to talk to a financial adviser who specialises in aged care. 

A team like Beacon can help you assess the affordability of aged care so that you can secure a spot in your facility of choice when the time comes to enter aged care. 

Why should you speak to an aged care financial adviser?

There’s no doubt that entering residential aged care is a financially, as well as emotionally, challenging time. Often there can be a lot of stress and strain on family members as they prepare to help a loved one move into a residential aged care facility. 

That being said, letting a professional aged care financial team handle the aged care costs and work out the best way forward financially, can help to ease some of the stress. 

A good aged care financial adviser can help you with the following: 

  • Discern which fees might be payable 
  • Present you with various strategies that could help to reduce your aged care costs
  • Ensure you receive any government benefits you are entitled to 
  • Determine whether or not you can afford to live at your preferred facility or facilities.  

Can the team at Beacon help with estate planning too? 

An aged care financial adviser can also work alongside your solicitor to ensure estate planning affairs are addressed. 

This could include; 

  • Selling your family home or transferring ownership
  • Reviewing your Enduring Power of Attorney 
  • Reviewing your superannuation death benefit nominations

Aged care costs can be complex, but they don’t need to be 

We help older people considering aged care, as well as their family members, navigate the often complex issue of aged care costs. We can help to assess your affordability for your aged care facility of choice, as well as explain the fees you’ll need to pay in simple everyday language. 

If you’re based in South-East Queensland, we’d be happy to meet you in your home at a time that is convenient for you to start the planning process. Alternatively, we offer nationwide appointments via Zoom. Get in touch with our team today to start your aged care planning process.