AGED care, retirement living options, financing the lifestyle you are seeking... it can all seem so overwhelming.
So it would be wise to get your hands on the third edition of Aged Care, Who Cares? (Where, How and How Much?) by Rachel Lane and Noel Whittaker.
The guide demystifies aged care in all its forms and helps people understand the many excellent choices available, as well as the complexities of our aged care system.
It covers the key questions: Where will you live? What care will you need? How much will it cost?
The authors have packed the book with case studies based on real-life scenarios, and provided resources to help you find and fund the care that best suits you.
- Where will you live?
While many people are determined to stay in their existing home there can be downsides, like keeping on top of maintenance, or finding yourself living alone without a social network.
You might fancy a granny flat – family looking after family – but it can be surprisingly complex. What happens if the children divorce? How will your pension, and your children’s inheritance, be affected?
Retirement villages and land lease communities are becoming popular for both their strong social networks and their cost efficiencies. These communities also let you do what you are able to for yourself and get help or care if you need it. And, of course, many people will move into residential aged care facilities, selecting from those that resemble a 6-star hotel to those that cater for specific cultural groups.
- What care will you need?
Do you want to move somewhere that can support you as you age, even at the risk of having “old people” around you? Or would you rather kick up your heels as long as possible then move to a care environment when you need it? What care do you need now? What can you reasonably anticipate needing in the future? The book makes sure you understand your choices.
- How much will it cost?
This often concerns people the most, so we break it down into a few key areas. The easiest is personal expenses: sit down and do a budget. Make sure you include treats such as chocolates and outings!
Then there are accommodation costs: how much will you pay now and how much will be refunded to you when you leave? If you move, you will need a legally-binding contract for your new accommodation that spells out your rights, including the ability to get care, and your responsibilities.
You also need to understand the cost of ongoing care, which will depend on whether you receive private care, a government-funded home care package, residential aged care, or a combination.
- How to afford the lifestyle you choose?
The last piece of the puzzle is figuring out how to afford the life you choose. The book looks at a range of financial planning strategies, from borrowing to fund care, renting out your former home, to paying more for a retirement village now to pay less exit fees later – and everything in between.
Aged care choices are complex. But that is because you have choices – and that is a good thing.
- Aged Care Who Cares? www.agedcaregurus.com.au
Find a community you want to be a part of. Normally in real estate the advice is “location, location, location”. In a retirement community it will be the interactions with other residents that are important. To quote a great Australian movie “it’s the vibe”.WHAT should you consider, financially, when it comes to retirement living? The Senior asked regular columnist and retirement finance specialist Noel Whittaker.
- Understand your contract. Whether you are moving to a strata title unit, a retirement village, land lease community or aged care facility, your contract has wide reaching implications, so it is important to know what it is, what rights and responsibilities are attached to it, and how it will impact on your pension entitlement and eligibility for rent assistance.
- Do your sums. The costs of retirement accommodation vary widely. If you are comparing the costs of moving to one or the other it may help to break the costs into three categories: the ingoing, the ongoing and the outgoing. In some cases there may be a few different payment options; be aware that if you are sharing in a capital gain you normally share in any capital loss too.
- Have a budget. The cost of your new accommodation should be a part of an overall budget, together with your personal expenses such as utilities, food and entertainment. If you are going to receive services such as meals, domestic help or care, make sure you include these on top of the other charges and then add occasional expenses such as holidays and Christmas so you know you can afford it.
- Seek advice. Crunching all the numbers can be complicated. An adviser who specialises in this area can help you get it right. It’s also important to seek legal advice to ensure you have up-to-date powers of attorney and a valid will so you have a trusted person who will act on your behalf and you don’t have tribunals or courts making important decisions for you.
