Category Archives: Aged Care

Aged care is something that is often thought about when we are getting closer to retirement age. It can be a difficult decision to make, as you want to ensure that you will be able to live comfortably and receive the best possible care. In this blog post, we will discuss means testing for aged care. What is it? How does it work? And most importantly, what does it mean for you? Keep reading to find out! 

Aged care means testing is the process of assessing your financial situation to determine how much government funding you are eligible for. This assessment takes into account things like your income, assets, and any other sources of financial support. The aim of means testing is to make sure that people who can afford to pay for their own aged care do not receive government funding, and that those who cannot afford to pay get the financial assistance they need. 

There are two main types of aged care means testing: income-tested and asset-tested. Income-tested looks at your taxable income and any other sources of income, such as pensions or investments. 

The Australian Government uses the following income details to work out the cost of means-tested aged care services: 

• Your income from work and net rental income 
• Your income support payments from the Australian Government or DVA 
• Your financial investments value 
• Your superannuation, overseas pensions and money from outside the Australian Government 
• Your income from income stream products, such as annuities and allocated pensions 
• Your family trust distributions or dividends from private company shares 
• Your gifting over the allowable amounts 

Asset-testing assesses the value of your assets, including your home and any other property you own.  

An asset test is used to assess the value of your assets. The following assets (not exhaustive) are included in this assessment, including assets held outside Australia: 

• Financial investments 
• Real estate 
• Shares 
• Household contents 
• Personal effects 

The Australian Government takes half of the overall combined assets if the care recipient is part of a couple. It makes no difference whose name the asset has. 

Their house counts as an asset if both of the following apply: 

• They enter residential aged care on or after 1 July 2014 
• A protected person isn’t occupying their home 

It is important to remember that means testing is not the only factor that determines your eligibility for government funding. Other things, such as your care needs and the type of care you need, will also be taken into account. 

Generally speaking, the more you have, the more you pay, but the more we can do to help.  

If you are thinking about entering an aged care facility, or if you are already in one, it is a good idea to speak to a financial adviser specialising in Aged Care and Centrelink about your options. They can help you understand the means testing process and give you advice on how to maximise your chances of getting government funding. 

Making the decision to move into aged care can be a difficult one. You want to make sure that you are making the right choices for your future, and that means taking into account all of your financial options. In this blog post, we will discuss some of the key things to keep in mind when it comes to aged care financial advice. We will talk about how to get started with planning for your retirement and what you need to think about when it comes to costs and funding. 

When it comes to an economical decision, you first need to start planning for your retirement. This means thinking about how much money you will need to have saved up, and how you will generate income in retirement. It is never too early to start planning for retirement, so if you haven’t already started, now is the time. 

One of the key things to think about when it comes to aged care financial advice is the cost of living in aged care. You need to consider how your costs will change once you move into an aged care facility. Will you still be able to afford your current lifestyle? Will you need to downsize? These are all important questions to ask yourself when you are planning for your retirement. 

Another important thing to think about when it comes to financial advice is how you will fund your aged care costs. There are a few different options available to you, and it is important that you understand all of them before making a decision. You can use your superannuation, take out a reverse mortgage, or apply for government funding. Each option has its own pros and cons, so you need to make sure you understand all of them before making a decision. 

When you need Aged Care Financial Advice

Making the decision to move into aged care is a big one. But if you take the time to plan for your future and understand all of your financial options, you can make the right choices for your future. So if you are considering moving into aged care, make sure you get aged care financial advice from a qualified financial adviser. They can help you understand all of your options and make the best decision for your future. 

It’s important to start planning for aged care as early as possible. The earlier you start, the more options you’ll have and the more prepared you’ll be financially. In this blog post, we will discuss some financial planning tips that will help you get ready for aged care. 

One of the first things you need to do is to make sure that your financial affairs are in order. This includes having a will and enduring power of attorney, as well as making sure your bank accounts and investments are up to date. You should also consider consolidating your bank accounts into one account, as this can make it easier for your family to manage your finances if you are unable to do so yourself. 

Cost of Aged Care Financial Planning

Once your financial affairs are in order, you need to start thinking about how you will pay for aged care. The cost of aged care can be significant, so it’s important to have a plan in place. There are a number of ways to pay for aged care costs, including through the sale of your home, income from investments, or government assistance. 

It’s also important to think about how you will manage your health care costs in retirement. Health care is one of the biggest expenses in retirement, so it’s important to have a plan in place to cover these costs. You can do this by taking out private health insurance or signing up for a health care card. 

Another important aspect of financial planning for aged care is estate planning. This is particularly important if you have significant assets that you want to protect. Estate planning can help you ensure that your assets are distributed the way you want them to be. Estate planning can be a complex process, so it’s important to seek professional advice from a financial adviser to ensure that your wishes are carried out.  

Finally, you need to think about your lifestyle in retirement. This includes considering where you will live, how you will spend your time, and what type of lifestyle you can afford. It’s important to have a realistic idea of your retirement lifestyle, as this will help you make the most of your financial resources. 

If you are thinking about moving into aged care, it’s important to speak to a financial adviser specialising in Aged Care. They will be able to help you understand all of your options and make sure that you are prepared financially. 

The relationship between a financial adviser and their client is one that can last for life. Aged care finances are especially vital because they have such an impact on how much money will be available when you’re old enough to need help with daily tasks. The right professional guidance at the start of this process could make all those years spent working hard worth it!