One of the most common questions our clients ask us is how much they need for retirement. This amount will be mainly based on the type of lifestyle the client wants to live such as how many holidays they want to take. Another important factor that can be overlooked is the cost of aged care.
Aged care costs are not just the cost of residential care or nursing homes. Also, need to factor in the cost of home or support services. These are the services that help you live in your home.
As our life expectancy increases, factoring in the costs of aged care is becoming increasingly important especially with the emergence of home care, and the rising incidence of dementia. Having the capacity to pay for services increases your range of choices and your ability to retain some independence.
Ignoring the costs of aged care when determining your retirement savings needs, may lead you to run out of money too early and having to rely on others.
The costs of home care
The costs of aged care have been increasing and are likely to continue to increase at a rate higher than inflation. When planning your retirement, consider the costs that you may incur in your later years for:
• Home care - home care costs can be difficult to predict and can vary from $100 a week to $5,000 a week depending on your care needs, family circumstances and your choice for what type of care you want. Government subsidies may help to drastically reduce the cost to you, but having adequate savings opens up the choices and ability to control the level and type of care received.
• Home improvement costs - to make the home suitable for you as you age (e.g. changes to bathrooms, widening doorways to enable wheelchairs and ramps).
Contact us if you want to review your retirement plans and factor in the costs of aged care. Don’t delay the conversation as starting sooner can increase your opportunities to meet all your retirement savings need.
At Futura Financial Group, we specialise in aged care advice. Our professional financial planners not only can provide aged care financial advice that will help with cash flow and minimise aged care costs, but help implement appropriate financial planning help you achieve your retirement goals and help ensure you have sufficient savings to last your retirement.
AFP® ,B.Bus(Acc), B.Comp, DFP, ADFP
Accredited Aged Care ProfessionalTM
Authorised Representative No. 1238040
Disclaimer: Information on this site may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Rates are current to 19th March 2018.
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