What is your aged care funding strategy?
Written on the 6 February 2018 by ArrowWhen it comes to planning for retirement few of us think beyond the opportunity to travel and do all those things we've been putting off until we have more time and fewer responsibilities. It's safe to say that moving into residential aged care is not on anyone's bucket list. But as the population ages, it's a possibility that few of us can ignore.
More than 3.6 million Australians, or 16 per cent of the population, are currently aged 65 and over.This is projected to grow to 22 per cent by 2061, or more than one in five. We're also living longer. The average Australian can expect to live into their 80s, and many of us will live beyond 90.That means more of us will need some form of aged care late in life. And as pressure grows on aged care service providers to cater for more people, the costs may rise.
What will you pay?
As we begin to consider the future care of not only ourselves but our older loved ones, what can we expect to pay?
Watch out for "extras"
Aged care providers must give itemised accounts to the resident breaking down each of these services and the associated charge. Legislation also states that these fees cannot be charged more than one month in advance.
Plan to make it easier
This is where we can help. Strategies for wealth creation that take into account all your retirement needs including the possibility that you will need some form of aged care - are increasingly relevant. With careful planning you need never compromise on the life you want to lead.
As the saying goes, you're never too young to plan your future. But you're never too old either!