Click below and listen in as Amanda explains with John Mackenzie on 4CA Cairns:
A Personal Journey by Amanda Golder, Financial Planner at Fowler’s Group
Aged Care Planning may not be the most exciting topic of conversation, but it’s a crucial aspect of preparing for the future. Many of us avoid contemplating our future aged care needs until circumstances force us to confront them. In reality, statistics show that by the age of 65, two-thirds of women and half of men will require some form of aged care during their lifetime. Despite common perceptions, the focus of Aged Care Services in Australia is on enabling individuals to maintain their independence, stay in their homes, and remain part of their community for as long as possible. Understanding these services, such as the Commonwealth Home Support Program, Home Packages, and Respite care, is essential for a smooth transition through the aging process.
Our Personal Journey:
My family’s experience mirrored the common reluctance to address aged care planning until it became unavoidable. My mother, already emotionally drained from caring for my grandparents in the late 80s, found the complexities of the Aged Care System overwhelming. By sharing our experience, I hope to help others avoid unnecessary heartache.
Common Mistakes:
One major misstep we took was not having a financial plan specifically tailored for aged care. While planning for retirement can be enjoyable, discussions around aging and care are often neglected. This lack of foresight can lead to delayed decision-making, leaving families in distress when urgent care is required.
The Importance of an Aged Care Plan:
An aged care plan involves deciding crucial aspects such as living arrangements, decision-makers for finances and medical matters, estate distribution, and the location of important paperwork. Our family’s oversight in not having a proper plan resulted in several setbacks, including a delayed application for home care support and a home falling into disrepair, impacting its sale price.
Choosing Suitable Living Arrangements:
Not all homes are suitable for the aging population, and it’s vital to explore alternative living options. Over 50’s lifestyle resorts, retirement villages, granny flat arrangements, and residential aged care are among the choices. Understanding the level of care provided and the financial implications of each option is crucial.
The Role of Enduring Power of Attorney (EPOA):
Our biggest issue was the absence of an Enduring Power of Attorney (EPOA). Explaining the role of EPOA and having one in place is vital, as it impacts decisions related to aged care. Without an EPOA, families may experience legal complexities through bodies like the Queensland Civil and Administrative Tribunal (QCAT).
Common Misconceptions:
Addressing common misconceptions is essential. A prevalent one is the belief that giving away money early will prompt the government to cover aged care costs. This strategy has downsides and may leave you without choices when it comes to rooms and facilities which may be important for your wellbeing. The government heavily subsidise aged care costs and the system has been designed to make aged care affordable for everyone.
Transitioning through aged care with ease and dignity requires proactive planning and understanding the available options. Learning from personal experiences and avoiding common pitfalls can make this challenging phase of life more manageable for both the aging individual and their loved ones. As a financial planner, my mission is to guide families toward a future where they navigate aged care decisions with knowledge and foresight.