Proactive care planning: achieving wellbeing and security

Taking steps to prepare for older age earlier in life, as well as during the retirement years, has been shown to improve the chances of positive wellbeing across physical and mental health, financial security, and social relationships. This was a finding from a recent National Seniors Australia report ¹. The report summarised the three main areas of preparedness: ageing-related changes in health and bodily abilities, accommodation preparedness and financial preparedness.

Planning allows you have choices and more control, so you can maintain as much independence as possible. Don’t accidentally fall into either of these traps:

• Leaving it too late to have the conversation: once you’re in crisis mode, for example, in the hospital after a fall. This is not the best time to be making life-changing decisions for anyone.
• Thinking it will never happen – unfortunately, the statistics say otherwise. On average, Australian men spend around 88 per cent of their lives in full health, while women spend around 87 per cent. These shares have not changed significantly over the past 20 years.²

So how do you get started?

Avoid going through this process alone. Talk with your Alteris financial adviser, and if you feel it would be helpful, they can connect you with a specialist Lifestyle and Care financial adviser.

Many clients tell us that they want to continue living at home for as long as possible, provided their health and mobility permit safe living. While family and friends may provide some support, it’s essential to investigate government services that can assist in preserving independence and ensuring safety at home.

Commonwealth Home Support Program (CHSP)

For those aged 65 and older who have undergone an eligibility assessment by myagedcare.gov.au and require minimal assistance to maintain their independence, the Commonwealth Home Support Service is available. This service can provide support in areas such as housekeeping, home maintenance, personal care, meals, and social and health services. The expenses related to these services are usually subsidised based on your income, the type of support required, and your chosen service provider.

Home Care Packages

Individuals who require a more coordinated approach to receiving support at home, and who have undergone an ACAT/ACAS assessment by myagedcare.gov.au, can access packages specifically designed to meet their needs. These packages are categorised into four different levels and are intended for individuals with more complex care requirements that extend beyond what the Commonwealth Home Support Programme can provide.

It’s important to be aware that the process of being assigned a Home Care Package after the initial assessment may take up to six months. Once assigned, you will need to choose a provider who will work with you to craft a package of services that aligns with your specific needs, all while adhering to the home care package guidelines. Each package comes with an annual budget that is allocated to the Home Care Provider you select. Currently, the funding amounts are as follows: $10,271.10 for level one, $18,063.85 for level two, $39,310.50 for level three, and $59,593.55 for level four. While part of this budget may be contributed by you, the majority is funded by the government.

How much do you need to contribute for a Home Care Package

The contribution for a Home Care package consists of two main components:

• Basic Fee: This is a fee that is paid by all care recipients, regardless of their financial circumstances. Currently, it is $11.22 per day for level one, $11.87 per day for level two, $12.20 per day for level three, and $12.53 per day for level four.
• Income-Tested Fee: The amount of the income-tested fee is determined based on your financial circumstances. There are caps in place for this fee, and these caps are indexed. Currently, part-pensioners pay no more than $6,543.66 per year, and self-funded retirees pay no more than $13,087.39 per year. Additionally, there is a lifetime cap of $78,524.69 that applies to this fee.

Getting advice

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

¹ https://nationalseniors.com.au/research/health-and-aged-care/ageing-preparation-report, accessed 07/11/2023.

² https://treasury.gov.au/publication/2023-intergenerational-report accessed 07/11/2023.

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