What to Consider Financially When It Comes to Aged Care

A life well-lived deserves a good ending. Some people prefer to acquire at home aged care services to experience the rest of their lives in peace, in a place they can call home, and around people willing to help and provide for their needs. Some prefer to move into a community of like-minded individuals where they can get the care, social life and support they need. 

When it comes to needing aged care services, many strategies can get costly. Some families take a long time considering if it’s a service within their budget, needs, and capabilities. An aged care financial planner can help you financially plan for aged care needs that are within your budget. 

What should families consider before acquiring aged care services? Here are some factors to think about.

1. Aged Care Budget

A family’s financial situation can play a vital role in determining if a retired family member can acquire certain aged care services. There are various aged care options to choose from, so it’s important you and your family are aware of each and its cost. As a result, you can identify which option would best suit yourself and your family financially and personally. 

Aged care services, in particular home care, can have a long waiting period before being able to secure the service. Hence, it’s important to discuss aged planning early with your family so you can best prepare for what you want in your future. 

You may consider booking an aged care assessment as soon as possible. This can help you decide how much home care you may need in the future and help determine if an income tested fee would apply to you. 

Working with a financial planner can provide you with the most up-to-date information regarding aged care in Australia, that is relevant to your financial situation. 

2. Aged Care Costs

Depending on the aged care choices you make, there are many related costs to aged care accommodation services that it’s important you are aware of. Aside from the daily expenses, most aged care facilities also charge residential care services and extra service fees. However, families can seek help from financial consultants on how to go about paying for these cost-effectively.

If you are planning to move to an aged care home, these are the fees you will need to consider:

3. Basic Daily Fee

An amount that everyone pays for day-to-day services they will receive at the aged care home – including laundry, meals, facility maintenance. 

4. Care Fees

The residential care fee varies upon the needs of the family member you’re applying on behalf of. Your family member may only require basic home care like assistance with medication reminders or exercising. If this is the case, you may have lower rates added on top of the daily fees. However, for high-needs care, these prices are usually higher.

5. Accommodation Costs

Depending on your financial situation, you will have to pay a certain amount of accommodation fees to live in an aged care home. These differ by person and by the facility. 

6. Extra Services

The extra services fee is only generated when families opt for more extensive instructions or services for their family members. For example, if you select a different meal plan for your family member, it will count as an added cost. However, you should be able to work around the additional services with the people operating in the aged care facility to determine if it falls under extra services.

Unlike care and accommodation costs, these costs are set by the facility or providers and are not government-subsidised meaning you will need to pay the full cost yourself.

Leo Wealth Financial Planning on the Central Coast can help you with aged care financial planning.

Planning ahead of time with an aged care financial planner can assist you in making the most valuable retirement lifestyle based on you and your families financial needs. In the end, retired family members deserve an excellent way to rest and enjoy the rest of their lives.

As we talk to our clients and identify their needs, we also formulate solutions in real-time to help them get the best options possible. If you’re considering aged care planning or retirement planning, reach out to us!

Book an appointment today!