There is a strong focus surrounding the importance of saving for retirement and being financially secure in your later years. However, many overlook the necessary requirements for Aged Care, an issue which is becoming more prevalent with increasing life expectancies.
Aged Care is an issue that many people prefer not to deal with until it happens. However, taking this approach can be expensive and emotionally stressful, not only for the person requiring Aged Care, but for their family too.
For many, the first time they are faced with this issue is when parents or in-laws require hostel or nursing home accommodation. This is often unexpected due to sudden health issues. Not only does this result in emotional stress, but financial challenges can also arise.
It is common for elderly people who have previously been self-sufficient in their own home to struggle financially when they face changes to their lifestyle. This is due to the fact that the income they have been relying on is no longer adequate to fund the level of care required.
A Financial Adviser can assist in structuring your financial affairs so that when Aged Care is required, there are adequate funds to pay for the necessary care.
Financing hostel and nursing home accommodation has various rules and regulations. 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. Receiving accurate information and advice can mean significant benefits for the financial wellbeing of the person needing care.
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 which may favorably 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.
Most of us believe the role of Financial Planning is to help us accumulate wealth to fund Retirement. However, it is important to seek advice on how to draw down your Assets and Retirement income – after all, many people go into Aged Care for an extended period.
Financial Advisers can help assess potential structures and investments to fund the level of care required for aging family members.