There has been strong focus on getting people to save more for retirement with strong emphasis on being able to afford an active lifestyle, but many overlook the necessary requirements for aged care as we are now living longer.
Aged care is a growing issue that many people prefer not to deal with until it happens. However taking this approach can be expensive and emotionally stressful for everyone connected to and including the person requiring aged care.
For many, the first time they have to deal with this issue may not be their own situation but when parents or in-laws need hostel or nursing home accommodation.
Often this issue has to be dealt with unexpectedly due to sudden health issues. Not only does this mean emotional stress but financial challenges can arise. For example when elderly parents have been self sufficient in their own home, and changes to their lifestyle may mean that the investment income or social security they have is inadequate to fund the level of care required.
"A qualified financial adviser can help you to structure your financial situation so when required, you receive the care you need"
Hostel and nursing home accommodation involves rules and regulations in regards to financing this type of care. The rules associated with Centrelink are important and are likely to impact on your situation regardless of your net worth. Many of these rules are complex, especially if you are not experienced in this area. Getting accurate information and advice can mean significant benefits for the financial well being of the person needing care.
Fees charged for aged care are in part determined by Centrelink rules. Asset and income tests are applied regardless of whether you are the homeowner or not. This is where a financial adviser can help.
Financial advisers can help analyse your individual situation and put a strategy in place. The adviser may recommend the use of products such as annuities or allocated pensions that can favourably impact the Centrelink assessment rules. Your adviser may also help you to address other important issues, for example ensuring powers of attorney and wills are drawn up and in place.
The rules that govern nursing home placements and pension entitlements change regularly and often are difficult to understand. Specialist advice can help you to understand and access information quickly.
Most of us think about financial planning to help us accumulate wealth to fund retirement. However as many people go into aged care for an extended period it is important to get advice on how to draw down your assets and retirement income. Financial advisers can put into place the appropriate structures and investments to fund the level of care required for aged family members.
At Apex Partners we welcome the opportunity to talk to you about ways we can assist you and your finanical situation. Call us on 1300 856 338 to arrange a free, no obligation appointment.