Every single person has a different idea of how they want their retirement to be.…
With the aging population steadily growing nowadays, more and more adults have to think about aged care. These facilities are essential to support people as they reach the latter portions of their lives, providing them with their basic needs, healthcare, safety, accommodation, and companionship. They offer a way to help seniors be more independent, healthy, and connected.
Putting yourself, your partner, or another loved one in an aged care home has plenty of benefits, and there are many options from which you can choose. They come in all shapes and sizes, so deciding on one will depend on your needs, preferences, and budget.
Choosing a reputable facility in your area is one thing, but planning how to pay for aged care is another. There are various options to choose from when deciding how to pay for the expenses, and understanding the costs involved can help you prepare for them.
Whether or not you’re eligible for government assistance, it’s best to explore the choices with your trusted aged care planners.
What Are the Costs Involved in Aged Care?
There are many costs involved with aged care homes, and they will depend on the facility you choose, as well as your income and assets. These expenses include but are not limited to basic daily fees, accommodation costs, and means-tested care fees. We will explore them below:
- Basic Daily Expenses
Daily resident fees cover the person’s living expenses, and it’s set at 85% of the basic single age pension. The maximum daily fee is currently at $53.56 per day, and the costs include the individual’s essentials, such as food, utilities, laundry, and care. Depending on the facility, the prices for care and accommodation may be separate.
Some aged care homes also offer additional services or extra services wherein they require additional costs. You may have to pay more for upgrades in meal choices, special activities, daily newspaper delivery, linen, room furnishings and other added facilities and services. These additional or extra service fees will depend on the facility and are not subsidised by the government.
- Accommodation Costs
Accommodation costs are the expenses that cover the place you occupy. There are various options on how you can pay these fees, such as a daily rate similar to rent, a Refundable Accommodation Deposit (RAD), or a combination of both.
The RAD is a lump sum payment for accommodation, and you can ask the facility to deduct certain amounts from what you’ve already paid. When you leave the aged care home, the RAD will be refunded to your estate, minus what you’ve already used.
- Means-Tested Care Fees
A means-tested care fee is an additional contribution you may need to pay on top of the basic fee. The facility will conduct a means assessment to determine whether or not you have to pay for this expense. The price you have to pay depends on your income and assets, and it can range from $0 to $259.26 a day.
Annual and lifetime caps apply to Means-tested care fees.
Seek the Help of Experienced Aged Care Planners
Choosing an aged care facility that suits your needs and budget can be a daunting task. You’ll have to consider many aspects, such as your income, assets, preferences, and what the facility has to offer. Fortunately, you can better navigate the process with the help of experienced aged care professional.
Want to learn more tips about aged care? Check out these interesting blogs!
- Managing Your Savings When Moving into Aged Care
- What Happens When You Meet With a Financial Adviser?
If you’re looking for an accredited aged care planner in Australia, let Coastal Advice Port Macquarie help. We’ll provide you with licensed aged care advice specialists to ensure that you receive the best care available while staying financially secure. Book an initial appointment today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.