One of the most rewarding parts of my role is helping clients through some of life’s most challenging moments.
Recently, I met with a self-funded retiree couple in their late 70s whose lives had changed almost overnight.
The husband’s health had deteriorated rapidly to the point where it was no longer safe for him to remain at home. After exploring their options, they found an aged care facility in Melbourne that was suitable for his needs. However, they were faced with a difficult financial decision.
The facility required either a Refundable Accommodation Deposit (RAD) of $650,000 upfront or ongoing daily accommodation payments. On top of that, there were care fees, Centrelink considerations, and countless forms and processes to navigate.
Like many families, they felt completely overwhelmed.
As self-funded retirees, they weren’t receiving the Age Pension and assumed there was very little government assistance available to them. They weren’t sure how to fund the accommodation, what would happen to their investments, or whether they would have enough money to ensure the wife could continue living comfortably.
After being referred to me by friends I’d previously helped in similar circumstances, we sat down and worked through every available option.
Rather than making rushed decisions, we carefully modelled different strategies. This included assessing whether selling or restructuring some of their investments would place them in a stronger long-term position.
By restructuring their finances, we were able to achieve several important outcomes:
- Fund the husband’s aged care accommodation and ongoing care costs.
- Help the wife maintain her lifestyle and meet her ongoing living expenses.
- Reduce unnecessary financial stress during an already emotional time.
- Position them to become eligible for a part Age Pension, helping with medication costs and contributing towards some of the mandatory aged care fees.
Just as importantly, we managed much of the administration on their behalf. We coordinated their Age Pension application, liaised with Centrelink, and worked directly with the aged care facility to help ensure everything progressed as smoothly as possible.
Aged Care Isn’t Just About the Numbers
One thing I see time and time again is families believing they have to work everything out on their own.
The aged care system can be incredibly complex. Decisions around accommodation payments, investments, pensions, assets and ongoing care costs are all interconnected, and the choices you make today can have a significant impact on your financial position for years to come.
When emotions are already running high, having someone to guide you through the process can make an enormous difference.
You Don’t Have to Navigate It Alone
Every family’s situation is different, and there is rarely a one-size-fits-all solution.
Whether you’re planning ahead for aged care or facing an unexpected health event, seeking advice early can help you understand your options, reduce stress, and make informed financial decisions with confidence.
If you or someone you love is beginning the aged care journey, know that you don’t have to navigate it alone. Sometimes, having an experienced adviser beside you can provide not only financial clarity, but peace of mind when you need it most.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
