Now is the time to think about your (aged care) future

Jennifer Langton, our Head of Aged Care Personal Advice, recently spoke to Julia Newbould from Money & Life (operated by the Financial Advice Association - FAAA) for an article to discuss the importance of planning for the aged care needs of ‘future you’ early, rather than at the point when you need it.

Aged care planning is something most of us think about with trepidation. It’s complicated and it’s confronting. However, it’s a good idea to think about it before an unwanted option may be thrust upon us.

There are many options from retirement villages to assisted care and aged care facilities and more. There are different cost options and most have waiting lists.

So, the time to figure out what you want is not when you need it but perhaps at age 65 when you are thinking of retiring and enjoying your future.

At this age, you might like to think about certain decisions regarding where you are going to live for the next stage of your life.

The decisions you will be making will not be about 65-year-old you but future you.

According to Aged Care Steps financial adviser Jennifer Langton, you need to ask yourself – Is your current home age-friendly? Will you realistically age in your home?

“You need to think about being connected to the community, is there public transport if you can no longer drive, are there aged care services available where you live, and are there stairs,” Langton says.

“It’s the people who insist they’re not moving and will have to be taken out of their home in a wooden box being those forced into aged care facilities.”

Life changes

Loss of a driver’s licence is something that is not always planned for but instead the result of a medical incident or accident. Not having facilities or public transport close by can greatly impact the quality of life you currently enjoy.

Living in a regional area might mean that accessing aged care services is difficult or even non-existent.

Your stairs or steep driveway might be fine to navigate today but as you age it is likely that these might be much more difficult.

Home renovations at this time might allow you to live comfortably in your own home longer.

It’s all about planning early to provide yourself with the best choice for you. If you are part of a couple – it’s important to think about how one’s future may impact the other’s.

While it’s somewhat premature to ask a financial adviser for a full financial plan for your aged care – you don’t know when you might want to access services, and legislation may change – it’s important to start educating yourself on the system.

“Understand there is flexibility and be realistic about your future care needs,” Langton says.

Essential preparation

Ensure your legal documents are in order. Make sure there is a Power of Attorney in place. If you don’t have one then someone trying to access your money, whether it be superannuation to pay for your aged care room or services or other, will have to go through the super trustees who may not accept your loved ones as a responsible guardian.

Make sure you also have a valid photo ID – as you age, your driver’s licence or passport may expire and if you need to access Centrelink for aged care services this could prove difficult.

There are cases where someone doesn’t have a passport or driver’s licence and were born overseas which means that when it comes time to enter into aged care it can often be a time consuming and sometimes expensive exercise is to track down a birth certificate and also proof of residency or citizenship.

Understand your options

Aged care can take many forms. You might like to age in your own home and access home care services. If you choose to leave your home there are lifestyle communities, retirement villages or communities, assisted living and aged care facilities.

There are even group homes which operate totally outside the government assisted facilities but provide additional choice for those who can afford a more luxurious aged care facility.

They all have different rules and funding options. We will explore in more detail in our next aged care article.

Complexities in the system mean that you should seek advice – financial advice to understand your obligations and options and legal advice to make sure your documentation is up to date and that you understand anything you sign with aged care providers.

This article first appeared on the Money & Life website on 16 October 2024 and can be accessed here.

*This article contains general advice only and may not be suitable for your circumstances. Make sure you seek financial advice appropriate to your individual circumstances before making decisions. The Money & Life website is operated by the Financial Advice Association (FAAA). The views expressed in this article are those of the author and not those of the FAAA.  The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article.  Nor does it endorse or assume responsibility for the information