No one looks forward to going into aged care, however if you are looking down the barrel of placing a loved one in care you probably need to start planning now.
It can take months between when you apply for a position to approval for a room, but even before then you should begin the financial transition.
And with our ageing population, that pressure is not going to ease up any time soon. According to the Australian Bureau of Statistics, about one in six Australians are over the age of 65 and by 2066 there will be 4.5 million Australians aged 65-74 with over 5.7 million people aged 75 or over.
Be prepared
But it’s not just about finding a suitable place, although that’s onerous enough. It’s also about being financially prepared well before there is an urgent need for physical care.
Financial advisor Alexandra Plumb says the benefits for planning well before someone needs care are “endless for everyone involved”.
“Most families reach out for help when their loved one’s health has already declined and their need for care is urgent,” Ms Plumb says
“This usually occurs because families either don’t want to, or don’t have time to, consider the idea of their loved one needing care or the person in need of care still thinks they can maintain their independence.”
Ms Plumb specialises in financially navigating major life changes, including retirement and aged care.
Relieve the stress
She says planning ahead can relieve some of the stress of an almost always stressful situation.
“With foresight and careful planning, you can stay in control and maintain choice, ensure access to government subsidies and other financial resources needed to pay for care, and reduce stress for both you and your family.”
Ms Plumb explained as the population continues to age, there is a risk that getting into aged care facilities and accessing home care services may become increasingly difficult.
“There are already many regional areas in Australia that are experiencing a shortage of in-home care service providers. Older Australians living in these areas, who are in desperate need of these care services are just not able to access this support.
“There are government reforms in the pipeline, but it’s still unclear exactly what they’ll deliver so it’s best not just to ‘hold out’ for those safeguards. The priority should be on planning ahead and planning early,” Ms Plumb said.
Families coming together
While Ms Plumb suggests involving an accredited aged care advisor like herself in aged care planning to help make sense of the financial implications, the first step is families coming together to make decisions.
“The ideal starting point is to hold a family meeting to make collective decisions. Use this opportunity to discuss options and preferences, address concerns, and determine who should be involved in the planning. Honest and open conversation is crucial for effective decision-making.”
Your next step must be a formal assessment, as government funding depends on what level of care is required and how much the patient is expected to contribute. While residential care may be recommended, sometimes support services at home will be enough, at least in the short term.
Find out if you are eligible for an assessment here.
You can apply for an assessment online here, you only need your Medicare card for this step. Part of the application will be setting an appointment time for the official assessment. This can take up to six weeks.
Your financial situation doesn’t affect your eligibility to live in a government-subsidised aged care home. However, it will impact the amount you may have to pay, which is why getting an assessment is so important.
Suitable fit
Once the candidate has been assessed, the next step should be to visit homes to see if they are a suitable fit. It’s a good idea to take along your assessment so the residence can determine the level of care needed.
Costs can be discussed at this point.
According to MyAgedCare, the types of fees and how much you pay will depend on:
- your income and assets, as assessed in your aged care means assessment
- the level of care you require
- the home you choose.
Residential care is made up of the following costs
- A basic daily fee. This covers living costs such as meals, power and laundry.
- A means-tested care fee. An additional contribution to the cost of care that the Department of Human Services calculates is based on the client’s income and assets.
- An accommodation payment.The cost associated with your accommodation, including the room you will occupy. Based on an assessment of your income and assets this cost can be fully or partly covered by the government and for some people the required payment can be made through an upfront amount, a daily payment or a combination of both.
- Fees for additional services. These refer to specific added services for you or your family member.
If this all sounds a bit overwhelming, that’s because it is. At this stage, it may be a good idea for families to collect all relevant asset and income documents and consult with a specialist financial advisor.
Have you had to put a relative into care? Did you find it confusing? Why not share your experience in the comments section below?
Also read: Interest rates put the squeeze on aged care
