According to the Australian Bureau of Statistics, in 2017 almost 3.8 million Australians were aged 65 and over.

Consider for a moment: this figure shows those people contemplating aged care for elderly family members are fast approaching the age when they’ll need it themselves.

Sobering thought.

What this means is that as aged care becomes increasingly important, the need for aged care facilities is growing proportionately. As demand out-grows supply, costs associated with residential care can only go one way.

Fees are regulated

There are strict regulations governing aged care fees and charges. Aimed at consumer protection, a degree of flexibility within the guidelines enables aged care facilities to adapt the fee structures to meet their own financial pressures.

So as we age, and as we begin to consider the future care of not only ourselves but our older loved ones, what can we expect to pay?

Plan to make it easier

The desire to provide loved ones with the best possible living conditions sometimes forces older people to sell their homes to afford care for an aging partner. Not only can this affect the age pension they receive, but can see the partner not in care seeking accommodation with relatives or alternative housing – a heartbreaking situation for someone wishing to leave an inheritance behind.

The focus on self-funded retirement doesn’t always consider increasing life-expectancy and what happens beyond pension-funding projections.

Indicative of our times, strategies for wealth creation with extended pension horizons are increasingly relevant. Planning ahead will help to support appropriate income levels so you are less likely to need a lump sum withdrawal from your investment portfolio.

If you need financial planning assistance, please email us today at office@bottrellaccounting.com.au to make an appointment.