While time spent with family is always special, it may highlighted changes in your loved ones – particularly older relatives.
Perhaps you noticed a decline in their physical or mental wellbeing from the last time you saw them. If so, now may be a good time to consider whether any additional support is needed.
Early planning can reduce stress and uncertainty when making care decisions – whether that be for more help at home right through to moving into a residential aged care facility.
Here are some things to consider that may help when having care conversations with elderly relatives.
Early planning is key.
There are several reasons why you should plan, well before the need for care is imminent. For example:
- In many cases, the need to move into residential care can be sudden due to a serious illness or injury (e.g. a stroke, heart attack or fall), or another unexpected event
- Long waitlists are common for residential aged care, particularly at the more popular facilities
- If you wait until the last minute to speak to a Financial Planner, there may be limited opportunities to manage care fees and/or maximise social security benefits.
Know your options.
Government support is available for those wanting to stay in their own home, as well as for those wishing to move into residential aged care.
Care options can include help with meals, transport for shopping or appointments, personal care (such as assistance with showering and dressing), occasional nursing care and continuous nursing care for those with higher needs.
Understanding the options can help the family to have meaningful conversations and make more informed lifestyle and financial decisions.
Assess costs and funding.
A range of fees may be payable when accessing care services. One of the key payments when moving into residential care is the accommodation payment. This payment:
- has certain limits
- can be paid as a lump sum, in regular instalments, or a combination of the two, and
- will be reduced by a ‘retention amount’ deducted from lump sum payments for up to five years.
Aged care providers must publish the accommodation rates on myagedcare.gov.au for potential residents to consider. The published amount varies between facilities. As a general rule, it will be higher for newer places and facilities in more affluent suburbs.
It’s important to ensure sufficient funds will be available to pay the accommodation payment, as well as cover the ongoing aged care fees and living expenses. A Financial Planner can help you navigate the complex aged care system fees and rules.
Other key considerations.
- The Aged Care Assessment Team will need to do a medical assessment to determine if your elderly relative will be eligible for government subsided support, either at home or in a residential aged care facility. This assessment determines the level of care needed.
- If residential aged care is a possibility in the future, it’s worth visiting a range of facilities in the preferred area as soon as possible.
Speak to a Financial Planner.
A Financial Planner can help by:
- checking the preferred care option is affordable
- suggesting ways to manage costs, while retaining flexibility and choice, and
- addressing estate planning and philanthropy goals, in conjunction with legal advisers.
We're here to help.
If you want to reach out to our team for further support or wish to be referred to a Bridges Financial Planner, please fill out the Financial Wellbeing Enquiry Form or email fwcd@beyondbank.com.au and we’ll be in touch.
This article is prepared by Bridges Financial Services Pty Ltd ABN 60 003 474 977, AFSL 240837.
The information provided in this article is factual in nature. It reflects our understanding of existing legislation, proposed legislation rulings etc as at the date of issue and may be subject to change. Whilst care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from any reliance on this article.
