As Australians, we are fortunate to have one of the highest life expectancies in the world. However, with this blessing comes the responsibility of ensuring that we are adequately prepared for our later years, particularly when it comes to aged care. Financial planning for aged care is a critical aspect of securing your future and ensuring that you receive the care and support you need as you age.

As we age, our needs and priorities change. Whether it’s for yourself or a loved one, navigating the aged care system and its financial implications can be complex and overwhelming. That’s where the expertise of a financial planner comes in, offering valuable guidance and support to ensure a smooth transition and peace of mind.

The Costs of Aged Care

Aged care in Australia can be expensive, with costs varying depending on the type of care required and the facility chosen. According to the Australian Government’s MyAgedCare website, the average daily fee for a residential aged care facility is approximately $52.71, with additional costs for accommodation and extra services. Over time, these costs can add up significantly, making it essential to plan ahead.

Government Support and Your Responsibilities

While the Australian Government provides some support for aged care through subsidies and programs like the Age Pension, it’s important to understand that this support may only cover some of your expenses. In many cases, individuals are required to contribute to their aged care costs, which can include daily care fees, accommodation costs, and means-tested fees.

Planning Early is Key

To ensure that you are prepared for the costs of aged care, it’s crucial to start planning early. This means incorporating aged care considerations into your overall financial plan alongside other goals such as retirement savings and wealth accumulation. By planning early, you can take advantage of strategies such as:

  1. Setting aside dedicated savings for aged care costs
  2. Investing in products that can help fund aged care, such as annuities or aged care-specific investment bonds.
  3. Structuring your assets and income to increase your eligibility for government support.
  4. Considering options such as downsizing your home or accessing equity release products to fund aged care.

Seeking Professional Advice

Given the complexity of aged care financial planning, it’s important to seek professional advice from a qualified financial planner who specialises in this area. As financial planners, we can help you understand your options, develop a tailored plan based on your unique circumstances, and provide ongoing support and guidance as your needs change over time.

How can a financial planner help?

A financial planner specialising in aged care can provide a range of services, including:

  • Assessing your financial situation and aged care needs
  • Developing a tailored financial plan to cover aged care costs
  • Advising on government entitlements and aged care fees
  • Implementing strategies to maximise your Age Pension
  • Protecting your assets and minimising fees
  • Providing ongoing support and financial management

Take control of your future

Planning for aged care can seem daunting, but it doesn’t have to be. With the help of a qualified financial planner, you can navigate the complexities of the system, make informed decisions, and ensure your financial security throughout your later years. Start planning today and enjoy the peace of mind that comes with knowing your future is in good hands.

Contact us today to discuss your aged care financial planning needs.



This information is provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

Collective Financial Advice Pty Ltd ATF Lake Macquarie Group Trust ABN 14 710 648 652 | Corporate Authorised Representative No. 1286336 | Alliance Wealth Pty Ltd ABN 93 161 647 007 |

AFSL 449221 |