The five key questions on aged care

AGED CARE FINANCIAL EXPERTS… From left, RI Advice proprietor and senior adviser, Sandy Miller, adviser, Chenara Newbegin, administrative assistant, Joe Bourke, administration manager, Linda Bourke and senior paraplanner, Nick Barzen. Photo: Katelyn Morse.
AGED CARE FINANCIAL EXPERTS… From left, RI Advice proprietor and senior adviser, Sandy Miller, adviser, Chenara Newbegin, administrative assistant, Joe Bourke, administration manager, Linda Bourke and senior paraplanner, Nick Barzen. Photo: Katelyn Morse.
AGED CARE FINANCIAL EXPERTS… From left, RI Advice proprietor and senior adviser, Sandy Miller, adviser, Chenara Newbegin, administrative assistant, Joe Bourke, administration manager, Linda Bourke and senior paraplanner, Nick Barzen. Photo: Katelyn Morse.
AGED CARE FINANCIAL EXPERTS… From left, RI Advice proprietor and senior adviser, Sandy Miller, adviser, Chenara Newbegin, administrative assistant, Joe Bourke, administration manager, Linda Bourke and senior paraplanner, Nick Barzen. Photo: Katelyn Morse.

IT’S a fact of life that many of us will need to one day face the daunting task of seeking aged care for someone close to us. At first, the complexity of dealing with the personal, practical and financial issues may seem overwhelming, but there are positives ways to address these issues and the experts at RI Advice can help you to navigate them.

Analysing all these issues and structuring the most effective solution takes some skill to organising and understanding of how all the factors interrelate. So don’t go it alone and contact RI Advise today for further information at www.rishepparton.com.au or give the local team a call on 5831 2833.

Here are some things you will need to consider:

What are the aged care options?

An Aged Care Assessment Team (ACAT) evaluates the degree of care needed. All facilities provide assistance in daily living such as meals, laundry and cleaning, as well as care. However, not all facilities can offer more intensive support for a higher level of care, such as full-time nursing care.

 

What costs are involved?

Whilst facilities are not government run, the cost of care is partially funded by government and there may be significant costs to residents.

Depending upon your level of income and assets, you may be required to make an accommodation payment. You can chose whether to pay this as a lump sum, daily payment, or a combination of the two.

You can also elect to enter a nursing home with you ACAT assessment and waive the Centrelink assessments – however, this may mean that you do not receive any government subsidies.

 

What will happen to the family home?
In many cases, the family home will be the major asset to consider and once the reality of the costs of aged care start to become apparent, it may seem inevitable that the family home needs to be sold to fund these costs. However, the situation with the family home needs to be fully considered.

 

What are the impacts on the age pension?

Maintaining age pension entitlements can be a very sensitive area for many people. If selling the family home is being considered, then it is important to factor in how this may affect pension levels, as the proceeds from the sale of the home may fall under the assets test once sold.

It may well be possible to keep the home, rent it out and use the income from this to fund the accommodation costs. Again, there are no simple answers here. The age pension may only be one component of income, so it is vital to consider the total income picture.

 

Making the most of ongoing income

Optimising ongoing income for the aged care resident can be quite a challenge once all the complexities of the aged care conversation are taken into account. Looking at fees, the age pension, the family home and other financial investments will all have an impact on what ongoing income can be generated.