They say there’s no place like home, but as we get older and perhaps face health issues, looking after ourselves and our homes can be stressful – in both practical and financial terms.
Planning ahead can reduce the stress
When the time comes that you need a helping hand, your options for aged care help include in home services or residential care. Your GP can help you decide what level of care you may need and is likely to recommend a free assessment with an Aged Care Assessment Team/Service (ACAT or ACAS). This assessment is required before you can access any government-subsidised services, which may include residential care or in-home services such as domestic assistance, personal care, meal services and home nursing.
While you may not need aged care services right now, it’s a good idea to consider your options and discuss your preferences with your family. With an agreed plan in place, you can be confident that the best decisions will be made at the appropriate time. Without some forward planning, fewer options may be available to you when you need them most.
Your financial health is important, too
One of the key considerations of planning ahead for your aged care is looking at financial strategies to ensure you have sufficient cash flow to cover the projected costs. Just some of the important issues that may need to be considered include:
• Should your family home be kept, sold or rented?
• How are your Centrelink or Veterans’ Affairs benefits affected?
• Do you – or could you – qualify for concessions on accommodation or home care services?
• What is the best way to pay for your care?
• What effect may your plans have on your estate?
• How do you best manage any tax implications?
Listen to our specialist age pension consultants who can assist you or your family with your age pension entitlements.
A quick guide to choosing aged care
The costs of aged care can vary widely and that’s why it’s important to consider the care that you might need and what you can actually afford. The amount that you will have to pay may also depend on our assessable assets and income.
A good way to start your search is making a checklist of what’s important to you – location, amenities, medical facilities and nursing care. This can help you narrow your choices and any aged care facility should welcome your enquiry or a visit. You may need to join a waiting list, so applying for more than one service could also be a good idea.
Understanding what’s affordable for you is essential. The government website www.myagedcare.gov.au provides listings of aged care services and accommodation fees in your preferred location.
Covering the costs of your aged care
Your Adviser will discuss different strategies that can help you and your family decide on the best way to ensure you have a reliable and regular cash flow to cover the costs of your care.
While the aim may be to maximise your pension entitlements, minimise fees and generate a good return from your investments – possibly including the family home – these are not independent objectives. Working with an Adviser who is experienced in this area, you will receive the guidance and support to make well-informed choices and take away some of the stress for you and your family.
An essential time to review your estate plan
If your living arrangements are changing, it’s important to consider the impact on your estate plans. A review will make sure that your affairs and your personal care will be managed to your own instructions and wishes.
You should talk to your solicitor and your Adviser about:
• Your Will, which may need to be updated
• An Enduring Power of Attorney, so your affairs can be managed responsibly if you are no longer able to make those decisions yourself.
• Any investments, especially those with ‘death benefit’ nominations.
• An Enduring Guardianship, to cover decisions on your care and living arrangements if you are unable to do so.
As these documents and powers can only be put in place while you are deemed of sound mind, it’s wise to plan ahead.
To start planning your Aged Care options, talk to your adviser today.
