The Australian aged care sector is changing next year. To understand the changes and subsequent impacts, we asked the Wealth Creation team at MB+M what families considering aged care should give thought to.

Coming to the conclusion that it is best for a loved one to enter aged care is an extremely heavy emotional and financial decision. Helping take some of the financial challenges out of the equation so you can have confidence you are making the right decision is what a financial advisor can provide. 

What planning is required to move into residential aged care?

Early planning and good advice can help minimise the stress for everyone involved. Getting older is one of life’s harshest realities, and you will be faced with many personal and financial decisions. Accredited Aged Care Professionals exist to help make the journey as smooth as possible through tough and emotional decisions.

Can our family afford to enter care?

The aged care sector and the fees associated are extremely complex. For instance, are you eligible for government subsidies? If mum and dad both need to enter residential care, is it best to enter at the same time? What should you do with the family home? There are so many variables that you can easily lose money and create more stress if you tackle it alone. Having an Accredited Aged Care Professional on your side takes the guesswork out.

What are the new aged care reforms? Does it affect me?

The reforms come into place on 1^st July 2025 for new residents entering aged care. Most likely, you will be required to pay more for care. Therefore, it’s crucial you seek professional advice to understand the impact of these changes, such as the aged care room price cap, and 10% retention being applied to RADs (if over 5 years).

When should we begin to plan as a family?

Unfortunately, we often see families scrambling at the last minute desperate to get a spot for their parents when there are high stakes and high stresses involved. Like most things, having time on your side is beneficial when considering aged care. It is recommended to find out your parents’ cashflow situation, what assets they have or would need to sell to afford to enter a facility, and what the fees would be for the type of care required. You can do this yourself, but we strongly suggest seeking professional guidance and speaking to a financial advisor.

MB+M is proud to have some team members who are Accredited Aged Care Professionals. This ensures you receive the best possible advice from a financial advisor who knows the process, system, and facilities whilst keeping your best interest top of mind.

Book an appointment with one of our team today to discuss your options of entering residential aged care.

Read more of our articles about aged care and retirement here: Are you ready for Aged Care, Australian guide to concession cards, How do I fund the later years of retirement?

You can find out more information about aged care in Australia at My Aged Care.

Book an appointment

If you’re interested in booking an appointment, your first consultation is free, call us on 03 5831 1233.

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Published December 2024
The information provided in this article is general in nature only and does not constitute financial advice.