Aged care is something many families do not think about until circumstances force them to. A fall, a hospital stay, declining mobility or memory concerns can suddenly turn what seemed like a future issue into an immediate decision.
Planning earlier can make the process less stressful and give you and your family more time to understand the choices available.
Aged care is not simply about choosing a facility. It can involve your home, finances, government support, family relationships, healthcare preferences and, importantly, how you want to live.
Here are five things you may not have considered
- Staying at home may be possible for longerMoving into residential aged care is not always the first step. Depending on your circumstances, support may be available to help you remain at home for longer.
This could include assistance with cleaning, meals, transport, personal care, home modifications and other day-to-day needs. Understanding what support is available can help you make decisions before a crisis occurs.
- Your home is part of the conversationFor many Australians, the family home is their largest asset and also one of their most emotional possessions.
If residential aged care becomes necessary, families often face questions such as whether the home should be retained, rented or sold. Each choice may have financial, tax, estate planning and cashflow implications.
Making a rushed decision about the home without considering the broader consequences can create unnecessary complications.
- Aged care costs are more complex than many expectPeople are often surprised by the number of different costs associated with residential aged care.
Depending on your circumstances, there may be accommodation costs, daily living expenses, care-related fees and optional services.
The way these costs interact with your income, assets and government support can be complicated. This is one area where understanding your options before making major financial decisions can be especially valuable.
- Couples can have very different care needsOne partner may require residential aged care while the other remains living independently at home.
This can be emotionally challenging, but it can also create financial questions. Families may need to consider how to provide for the person entering care while maintaining sufficient income and financial security for the partner remaining at home.
A good strategy needs to consider both people, not simply the person requiring care.
- Family discussions matterAged care decisions often involve adult children, siblings, attorneys, medical professionals and other family members.
Having conversations early can reduce misunderstandings about who will make decisions, what your preferences are and how financial matters should be handled.
It may also be worthwhile reviewing estate planning arrangements, powers of attorney and other important documents.
The three common fears
Aged care planning is often accompanied by understandable concerns.
- Losing independence is one of the biggest fears. Many people worry that accepting care means losing control over their life.
- Running out of money is another major concern. People may worry about the cost of care and whether their savings will last.
- Making the wrong decision can also cause considerable anxiety, particularly when families are trying to compare complex choices under time pressure.
These fears highlight why planning ahead can be so valuable.
Three advantages of seeking aged care advice
- Understanding your choicesAn adviser can help explain the financial implications of different aged care options and help you understand the questions that should be considered.
- Making informed financial decisionsDecisions involving investments, pensions, cashflow and the family home can have long-term consequences. Advice can help ensure these decisions are considered as part of an overall strategy rather than in isolation.
- Greater confidence for the whole familyPerhaps one of the greatest benefits of aged care advice is having a structured plan. Knowing that important financial and lifestyle issues have been considered can provide reassurance for both the person receiving care and their family.
Aged care planning is ultimately about much more than money. It is about maintaining dignity, choice and quality of life.
The earlier you start the conversation, the more opportunity you have to understand your options and make decisions on your own terms. Seeking appropriate financial, legal and aged care advice can help you and your family approach the next stage of life with greater clarity and confidence.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
