Aged care financial planning Newcastle | Lake Macquarie | Hunter Valley

Aged care financial planning helps you prepare for the costs associated with aging, particularly if you or a loved one requires assistance with daily living. It involves assessing your financial situation with the help of aged care advisers and creating a plan to fund your care needs while preserving your assets. A financial adviser can assist with understanding available government support and navigating financial complexities.

Planning for aged care is crucial because:

• Costs are rising: Aged care can be expensive, and costs are continually increasing.
• Complex system: Navigating the aged care system and understanding available options can be confusing.
• Protect assets: Planning can help you protect your assets and ensure your family’s financial security.
• Maintain independence: Proactive planning gives you more control over your future care arrangements and living situation.
• Analyse cash flow: Comprehensive financial planning for aged care should include analysing cash flow alongside other financial factors, such as pensions and tax, to make informed decisions.

It’s never too early to start planning for aged care. The earlier you start, the more options you’ll have and the better prepared you’ll be for potential costs. However, it’s especially important to start planning when:

• You’re nearing retirement: This is a good time to assess your finances and factor in potential aged care costs.
• You or a loved one starts needing help: If you or your loved one’s health is declining, start exploring care options and financial implications.

Costs vary depending on the type of care you need and where you receive it. Typical costs include:

• Accommodation payments: An upfront or ongoing cost for your room in an aged care home.
• Daily care fees: Cover everyday living expenses such as meals, cleaning, and personal care.
• Means-tested care fees: An additional fee based on your income and assets, as assessed by the government.
• Extra services: Optional services like hairdressing or specialised therapies may incur additional costs.

Yes, the Australian Government provides financial assistance for eligible individuals through the Aged Care Funding Instrument (ACFI). We can help you understand if you qualify for government subsidies and how much you might receive.

We provide expert advice and support, including:

• Assessing your financial situation: Our aged care advisers will review your income, assets, and expenses to determine your financial capacity for aged care.
• Exploring care options: We’ll help you understand the different types of care available (home care, residential care, respite care) and their associated costs.
• Developing a tailored plan: We’ll create a personalised financial plan to fund your chosen care arrangements while preserving your assets.
• Navigating the aged care system: We’ll guide you through the often-complex process of accessing aged care services and government support.
• Reviewing your estate plan: We’ll ensure your estate plan is up-to-date and reflects your aged care wishes.

Maximising your pension entitlements is a crucial step when planning for aged care. Aged care financial advisers can help you structure your finances to optimise these entitlements. Understanding the income-tested fee is essential, as it directly impacts your aged care costs. By working with aged care specialists, you can receive expert advice on minimising income-tested fees and maximising your pension entitlements. This strategic approach can help reduce your overall aged care fees, allowing you to make the most of your hard-earned assets and ensuring a more comfortable financial future.

A RAD (Refundable Accommodation Deposit) or Accommodation Bond is a payment made to an aged care facility to secure your place. The amount is determined by the facility and is refundable, minus a retention rate. Funding these deposits can be complex, but aged care financial planners can guide you through the available options. You can choose to pay the full RAD amount upfront, opt for a combination of RAD and DAP (Daily Accommodation Payment), or explore financial products like loans or annuities. Aged care specialists provide valuable resources and guidance, helping you make informed decisions about funding your RAD/Accommodation Bonds effectively.

Selecting the right aged care facility can be a daunting task, but aged care specialists can offer expert advice to help you make the best choice. Consider factors such as the level of care required, location, amenities, and aged care costs. Aged care financial advisers can help you understand the financial implications of different facilities, ensuring you make an informed decision. By evaluating these factors and seeking professional guidance, you can choose an aged care facility that meets your needs and budget, providing the best possible care and support for you or your loved one.

Contact Collective Financial Partners today to schedule a consultation. We’ll help you navigate the complexities of aged care and create a plan that provides peace of mind for you and your family.