Almost two-thirds (63 per cent) of Baby Boomers don’t know how much aged care will cost them, according to the second annual survey by Not For Profit aged care and retirement living provider RSL LifeCare released this week.
“This poses enormous challenges for the community if Baby Boomers are ill-equipped, or ignorant, of the true costs involved,” said RSL LifeCare CEO Graham Millett.
The survey of more than 1,000 people aged 56 to 74 found three in five Baby Boomers expect to fund their own retirement from their superannuation savings. It is highly likely the younger Baby Boomers are behind this sentiment as compulsory superannuation was introduced in 1993.
The findings also show that Baby Boomers still have a poor regard for current aged care options, but those attitudes are slowly picking up. 16 per cent believe aged care is very good or excellent, up from 10 per cent in 2020, while 39 per cent say it’s less than satisfactory or poor, down from 48 per cent in 2020.
“This means aged care providers are beginning to turn around previously poor perceptions of their sector. The Federal Government’s record $17.7 billion funding increase over five years, announced in the May Budget, may also be having a positive effect,” said Mr Millett.
When care is needed, more than three quarters (78 per cent) of Baby Boomers want to stay in their own homes with occasional nursing visits.
Only three per cent want to enter communal residential aged care in its current format – triple the one per cent from last year. The survey found the Baby Boomers say they will only move into formal care when their physical or mental needs force them to do so, or when they become a burden on their families.
And when they do move into aged care, 92 per cent want to be well fed, well supported and well-travelled.
But while we all hope to avoid it, the reality is the majority of older Australians will require aged care services at some stage.
The findings clearly highlight the need for Baby Boomers to educate themselves on what aged care services are available to them – and what the likely costs will be so they can plan accordingly.
You can find out more about planning for aged care in later life at agedcare101.
