The growing need for specialised Aged Care advice
There is a well worn saying that ‘none of us are getting any younger’. While this is a (somewhat unfortunate) truism, it is important to reflect on this ‘ageing concept’ with respect to caring for ourselves and our loved ones.
Yes, we are all ageing and although it is something we rarely want to think about, most people require at least some form of assistance and support in the later years of their retirement, and the effects on lifestyle and having appropriate care can be significant.
Among other things, the cost of an ageing population means that:
- There is a high and increasing cost to aged care in Australia. Supply just does not meet demand.
- There is some government support available, however it is often complex to understand, maximise and secure.
The 2011 Productivity Commission Report, ‘Caring for Older Australians’, identified that by age 65, the chance of needing aged care during the remaining years of your life is 68% for a woman and 48% for a man. By age 85, this has risen to 80% and 62% respectively.
Broadly, there are two main types of aged care support:
- Residential aged care: Providing out-of-home care, 24‑hour supervision and assistance with personal needs
- Home care services: Providing independent living at home or in a retirement village:
Although entering a residential aged care facility or accessing in-home aged care services is a common occurrence in retirement, few Australians are really prepared when the time comes.
There are significant emotional and financial questions to consider and the decisions can have far-reaching consequences. To make the right choice, it is important to consider:
- Availability of the type of care you want;
- Affordability of care;
- Impact on any pension entitlement;
- Tax consequences; and
- Impact on plans for your estate.
We at Principal Edge Financial Services are one of the few advisory businesses who have recognised and understood the complexities of these important decisions that must be made at this time and the many ripple effects a move to an aged care facility can have for all concerned.
Our role is to ensure that these complex and important decisions are made with compassion and on the basis of sound advice. In essence it seeks to deliver both the financial options and the logistical considerations associated with Aged Care. For this reason, we have developed two distinct offerings which may be undertaken separately or in combination.
- Specialised Aged Care financial advice
- Full Placement service
Our experience shows that there is often a triggering event such as an illness or serious injury that sparks the need for specialised care. Emotions of all family members at this time are understandably high, and this can sometimes dominate the decision making process. In truth, the statistical age to start planning for future specialised care is age 52!
In a calm environment, with a sound mind and with all of the necessary information at hand, good decisions are far more likely and dignity is maintained.
Lex Goldsmith | Senior Planning Analyst | Principal Edge Financial Services
March 2015
