Just 14 per cent of older Australians have accounted for the costs of aged care, with another 38 per cent pondering the costs involved, according to a new study by consumer group National Seniors.
Interestingly, those exposed to aged care through a family member or friend were 75 per cent more likely to plan for aged care costs – suggesting that having a better understanding of the aged care system creates a greater awareness of the costs involved.
The remaining 48 per cent of people surveyed, who were aged 60 to 80, said they would wait until they needed to make a financial plan for being cared for later in life. This is despite 90 per cent of survey respondents thinking they either would or could need care services.
The reality is that this is right on the money.
Around one-third of Australians aged 65 and older use some form of aged care service – whether it’s help around the home with cooking, cleaning and maintenance to personal and nursing care right up to higher-level care in an aged care home.
Fortunately, the Government foots the bill for 78 per cent of all aged care costs for people receiving support at home and in residential care.
However, people still have to contribute to their services depending on their income and/or assets.
The more money and assets you have, the more you have to pay – so it is important to consider your future care costs now – before you may need support.
“People are hesitating because of the negative media around nursing homes or simply denying the fact that they will need care and will have to pay for at least some of it,” said Professor John McCallum, National Seniors CEO and Research Director.
Clearly making a financial plan ahead of time is a sensible option to ensure out-of-pocket costs are covered.
Planning ahead will also provide confidence and reassurance for you and your family that you will be well looked after as you age.
You can find out more about planning for aged care – including the services available and the costs involved – at agedcare101 here.
