Caring through retirement

As we move through the various phases of retirement, our lifestyle and care needs will change. At some point, we or our loved ones will need varying degrees of assistance, and it is important to understand the emotional, financial, and practical challenges of caring through retirement.

Like many other countries, the number of older Australians is growing both in number and as a percentage of the population. By 2026, more than 22 per cent of Australians will be aged over 65 – up from 16 per cent in 2020. ⁱ It is also becoming more common for aging parents to rely on their adult children for assistance when living independently. According to the latest Australian Bureau of Statistics (ABS) Survey, there are an estimated 2.65 million people (11% of Australians) who provide informal care in Australia.

Taking its toll on carers

Acting as a primary caregiver often requires you to provide physical, emotional, and financial support, which can lead to various impacts on your mental and financial wellbeing.

In a study conducted by Australian Unity in 2022, 21 per cent of respondents showed increases in mental distress and loneliness, along with lower personal and financial wellbeing levels when compared to non-carers and professionally employed carers. ⁱⁱ

These figures demonstrate the need for informal carers to seek financial and wellbeing support services.

Support for caregivers

For many, a good place to start is the Carer Gateway, which is a national service funded by the Australian Government. The service is available to carers, regardless of their financial position (as it is not means tested), who look after a family member or friend who is frail due to age or a person living with disability, medical condition, or mental illness. The services provided include emergency respite, financial support, community peer groups, interactive courses, coaching and counselling services.

Alteris has also partnered with Care & Living with Mercer to help carers access the support they need to achieve better health outcomes for their loved ones. This includes guidance and advice to enable individuals to remain at home and live independently, stay at home with additional care support, transition to a residential aged care facility, or explore available palliative care options.

Financial support options

When caring through retirement, it is important to understand what government payments may be available for you and/or the person you care for. These include:

• Age Pension: A main income support payment available for eligible individuals who have reached age pension age (67 year of older). The age pension also provides access to a range of concessions.
• Disability Support Pension: Financial support for eligible individuals aged from 16 to age pension age with a permanent physical, intellectual, or psychiatric conditions that prevent them from working. ⁱⁱⁱ
• Mobility Allowance: Financial assistance for individuals who travel to work, study or looking for work but cannot use public transport independently due to disability, illness, or injury. ^iv
• Home Equity Access Scheme: A voluntary, non-taxable fortnightly loan program designed to supplement retirement income for individuals who are Age Pension age or older who have equity in Australian real estate that can be used as security for the loan.^v
• Carer Payment: An income support payment for eligible individuals who provide constant care to someone who has a disability, has a severe medical condition, or is an adult who is frail aged. ^vi
• Carer Allowance: A fortnightly non-asset-tested payment available to an eligible individual who provides daily care and attention to a person who is assessed as needing a level of care in their home or your home. ^vii
• Carer Supplement: An annual lump sum, non-taxable, payment for those with caring responsibilities who receive Carer Allowance, Payment, DVA Partner Service Pension and Carer Allowance and DVA Carer Service Pension. ^viii

We are here to help

Caring through retirement can put financial pressure on the whole family and has the potential to impact retirement savings. For more information on any of the government payments and how they may apply to your scenario, please contact one of our specialist financial advisers.

With a specialist division of financial advisers who are accredited in aged care advice, we have a team that can talk you through the various options and explain the various financial considerations. Our team can also connect you with trusted organisations who can help guide you through the care choices that best align to your unique care situation. Learn more about our accredited aged care financial advisers.

Sources

i https://www.sydney.edu.au/news-opinion/news/2023/10/09/confronting-ageing-the-talk-australia-has-to-have.html

ii https://www.australianunity.com.au/wellbeing/what-is-real-wellbeing/the-wellbeing-of-informal-carers

iii https://www.servicesaustralia.gov.au/disability-support-pension

iv https://www.servicesaustralia.gov.au/mobility-allowance

v https://www.servicesaustralia.gov.au/home-equity-access-scheme

vi https://www.servicesaustralia.gov.au/carer-payment

vii https://www.servicesaustralia.gov.au/who-can-get-carer-allowance?context=21811

viii https://www.servicesaustralia.gov.au/carer-supplement

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