It's normal to feel overwhelmed when making decisions around aged care. But you're not alone.
Aged care is the support provided to older people in their own home or in an aged care (nursing) home. It can help with everyday living, health care, accommodation and assistance. Government-funded aged care services may also be available to eligible people.
Aged care can not only be difficult to understand, but having to make decisions for someone you care about can be very emotional. When you add the cost of aged care and how to pay for it, the stress can build up.
This is where we can help. Our dedicated aged care page is a good place to start planning. You can also join our live webinars throughout the year where you’ll be able to ask us any questions you may have. And our qualified aged care specialists can explain how aged care accommodation payments work, provide advice on your options and help you avoid the panic of trying to find a large lump sum.
The rising cost of aged care
The prices for a room in residential care may have you worried about how to pay for one. Aged care room prices are quoted as a lump sum, with prices ranging up to $2 million for a room. On average, you might expect to be quoted around $400,000 - $700,000. When you’re quoted prices starting at six figures, you can wonder how you’ll ever be able to afford it. The good news is that you have choices on how to pay for care.
Alternatives to paying lump sums
With a bit of research and good advice, you can choose a payment option that works best for you. You might choose to pay a lump sum, but you could also choose to pay a daily fee and effectively ‘rent’ the room instead.
The daily ‘rental’ price of a room in aged care, called a ‘DAP’ (daily accommodation payment) is getting more expensive. Once a person enters care though, the rate becomes fixed so that you have some certainty with your planning. Only if you move rooms or move to a new provider will the rate change.
We’re here to help
With so much to think about, we recommend you reach out to us before making a financial decision about aged care.
We offer accredited aged care specialist advice through our financial advice service. Every family has different needs and our aged care specialists can help you with choices like whether to sell assets so you can pay the lump sum upfront. We can look at your family’s overall situation and recommend the best plan of action based on your circumstances.
Getting the right advice today can make a big difference to you and your family. Make an appointment today.
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