Aged care advice is essential as you try to plan for the final stage of your life – moving into a retirement home. The financial side of things can get very complicated, as you have had your whole life to build up an assets network and enter into complex arrangements. You may also need to factor in a part or full pension, along the fees from your facility.
Good aged care advice will help you to work out what your priorities are and protect your accumulated wealth for as long as possible while leaving enough to pay for increasing medical costs. Whether you want luxury accommodation and staff for the rest of your life, expect higher medical bills or want to leave your children a nest egg, the right aged care advice can help you to set yourself up.
When you need to finance ongoing living support as you get older you have a number of options which any good provider of aged care advice will be able to explain to you. You might want to stay in your own home and have someone come in to help you; you may want to rent out your home to pay for a place in a retirement home; or you might sell your house.
If you want to stay at home, you have some options to help you. The Government provides subsidies to help you pay for a disability support worker who will help you to cook and shop as well as getting around. The subsidies will also help you to get personal help, nursing and meals. This money is unlikely to provide enough for you to get full time support, so you will still need financial help.
If you don’t have the assets or cash to pay for your home support, you still have options. A reverse mortgage will get you the cash you need in regular payments – however the bank you borrow from will own the equity in your home. You will receive payments from your financial provider, which you will need to pay interest on, however you only have to pay it when you die, move into a retirement home or sell the house.
When you are ready to move into a residential support facility (retirement home) you will need to pay for it – at least partly. You may be eligible for support from the Government, as well as the pension, although the payments will be reduced if you sell your home and increase your asset base. Aged care advice can help you to work out the best way to fund your accommodation.
If you don’t sell immediately then your home will not count as an asset for the pension test for 2 years after you move into the nursing home. Once you sell, however, the cash increase will factor into your eligibility. If you decide to fund your supports by renting out your home, then it will immediately become an asset as far as Centrelink is concerned.
Other ways aged care advice can help
There are of course other factors that you need to consider when you get your aged care advice. If you are a grandparent, you might be financially contributing to your grandchildren’s education or want to set up some help for them. You may also be helping your children or have other financial commitments to meet.
If you believe that your medical costs are likely to increase – say, if you have potential heart trouble or Parkinson’s Disease – then you will also need to have some extra funds set aside to ensure you can be treated in comfort.
The goal of aged care advice is to fund a comfortable retirement and medical treatments through astute asset management. The intention is to maximise your pension payments, and allow you to leave your loved ones as much as possible without impacting your quality of life.