“What will happen to my home, savings, and retirement income if I need aged care, whether in a nursing home or an aged care facility?”
It’s a question many older Australians and their families find themselves asking, often during already stressful and emotional times. The financial side of aged care can be a maze of unfamiliar fees, complex regulations, and difficult decisions, leaving many people overwhelmed and unsure of where to turn.
Yet, with the right guidance, this chapter of life doesn’t have to be uncertain or financially draining.
That’s where aged care financial advice comes in. It’s more than just numbers and spreadsheets; it’s about making smart, informed choices that protect your assets, secure your care, and bring peace of mind to you and your loved ones.
In this blog, we’ll break down what aged care financial advice is, how it works, and why it’s an essential step in planning for a comfortable, financially secure future.
What Is Aged Care Financial Advice?
Aged care financial advice is a specialised form of financial planning designed to help individuals and their families navigate the financial aspects of aged care. It covers everything from determining the cost of aged care to understanding how to manage your assets and income most efficiently, to ensuring that you’re able to make the most of available government support programs.
For many people, the thought of needing aged care services, whether in-home aged care or residential aged care, can bring about feelings of uncertainty. How much will it cost? What is covered by Medicare? Will I be able to afford the care I need? These are just a few of the many questions people ask themselves.
Aged care financial advice helps answer these questions, offering tailored solutions to maximise the available resources and ensure you can afford the care you need without depleting your life savings.
Key Areas Covered by Aged Care Financial Advice
Aged care financial advisers are experts in both financial planning and the aged care system. Their role is to guide various aspects of the aged care process, including:
1. Cost of Care
Aged care isn’t free, and the fees can vary significantly depending on your level of care and the provider. From daily care fees to accommodation contributions, and now with changes set to take effect in November 2025, navigating the cost structure can be overwhelming. A financial adviser will break it all down, showing you exactly what to expect and what you can afford. These cost structures may include daily care fees, accommodation contributions, or even the option to pay a lump sum, depending on your circumstances.
2. Asset Testing & Income Assessment
The Australian government assesses your income and assets to calculate what you’ll pay for care. This includes your savings, superannuation, and the family home (in some cases). After November 2025, these assessments will become more stringent, meaning many people may face higher out-of-pocket costs.
A financial adviser can help you structure your finances to legally and ethically minimise these fees, often by timing decisions or rearranging assets before the changes take hold. This is where an aged care financial adviser can help you generate income, maintain cash flow, and even explore pension entitlements without compromising your eligibility for subsidised care.
3. Government Support & Subsidies
There are various government-funded programs designed to assist with the costs of aged care, including the Aged Pension, Home Care Packages, the Aged Care Levy, and subsidies for eligible individuals. A financial adviser will guide you through these options, ensuring you receive any assistance you qualify for.
4. Estate Planning
Planning for aged care also means planning for what happens to your estate. This includes decisions about the family home, superannuation, and savings. With fee rules changing soon, many families are looking to protect intergenerational wealth while still securing high-quality care. Aged care advisers work closely with estate planners to help you manage both.
5. Financial Structures
Often, seniors and their families look for ways to protect their assets, like their home, from being spent on aged care. Financial advisers can recommend strategies like gifting, family trusts, and other asset protection strategies to minimise the impact of aged care costs on family wealth.
Your loved one deserves the best in aged care. We’re here to support you with guidance, care planning, and flexible service options that offer comfort, dignity, and peace of mind. Get in touch today.
Why Is Aged Care Financial Advice Important?
Now that we have understood aged care financial advice, let’s take a deeper look at why it’s so important.
1. Peace of Mind
The primary benefit of aged care financial advice is peace of mind. As we age, we want to know that we’re making informed decisions that will provide the care we need, without jeopardising our financial future. By working with a financial adviser who specialises in aged care, you’ll feel more confident about the choices you’re making, knowing that you’ve considered all the options available to you.
2. Maximising Available Financial Resources
Aged care can be expensive, and the financial strain can be overwhelming. Without proper planning, families can quickly burn through their savings or go into debt. Financial advisers specialise in helping people structure their finances in a way that maximises available resources, such as government subsidies, to reduce out-of-pocket costs for aged care.
A financial adviser will work with you to identify what financial assistance you qualify for, ensuring you’re not paying more than necessary for your care. They can also recommend ways to draw on other sources of income or assets without jeopardising your quality of life.
3. Avoiding Financial Pitfalls
The rules surrounding aged care funding can be complex, and a lack of understanding can lead to costly mistakes. For example, incorrectly structuring your finances could result in paying higher fees for care or losing access to government assistance. This is where a financial adviser can help by guiding you through the system and avoiding common pitfalls.
For instance, gifting assets to your children or transferring ownership of your family home could result in penalties or a reduction in government assistance. A financial adviser will ensure that these decisions are made in line with current regulations and will work with you to ensure the long-term sustainability of your finances.
4. Planning for the Future
One of the key aspects of aged care financial advice is long-term planning. A financial adviser can help you prepare for future care needs by developing a plan that suits your specific needs and goals. This means not only understanding your current financial situation, but also projecting your future needs, such as the likelihood of requiring more extensive care, and developing a strategy to meet those needs.
By planning ahead, you can avoid making rushed or ill-informed decisions during a time of crisis, allowing you to take control of your future and ensure a smoother transition into aged care when the time comes.
5. Helping Families Make Informed Decisions
Aged care is not only a personal decision but also a family affair. In many cases, children or other loved ones are involved in helping make decisions about aged care. Financial advisers can assist families in understanding the financial and emotional implications of different care options, enabling them to make informed decisions that benefit everyone involved.
6. Tax Benefits
There are a variety of tax incentives and benefits available for seniors, especially for those receiving aged care services. A financial adviser will help you navigate the tax landscape, ensuring you’re aware of any potential deductions, offsets, or exemptions available to reduce your tax burden.
Planning aged care for yourself or a loved one? Let our experienced team help you navigate the next steps with compassion and clarity. Contact us today to explore the care options that best suit your needs.
How to Find the Right Aged Care Financial Adviser?
Choosing the right aged care financial adviser is crucial. Here are a few tips to ensure you find the best match for your needs:
- Experience and Expertise: Look for advisers with specific experience in aged care financial planning. They should be well-versed in the latest regulations, subsidies, and financial structures.
- Accreditation: Check that the adviser is accredited by relevant bodies, such as the Financial Planning Association (FPA) or the Association of Financial Advisers (AFA).
- Personalised Advice: A good adviser should offer tailored advice, rather than a one-size-fits-all solution. Make sure they take the time to understand your unique financial situation and care needs.
- Transparent Fees: Ask about their fee structure upfront. Some advisers may charge an hourly rate, while others may offer a fixed-price service. Be sure to understand all costs involved before proceeding.
Conclusion
Aged care financial advice is not just about managing the costs of care; it’s about ensuring that you and your family are making the best possible decisions for your financial future. By seeking professional advice, you can maximise your resources, avoid costly mistakes, and gain the peace of mind that comes with knowing your care needs will be met, no matter what the future holds.
As you approach this important life stage, consulting an aged care financial adviser can be an important step in securing a comfortable, stable future for yourself and your loved ones. Whether you need general information, specific advice on entering residential care, or want someone to help you manage your money, our independent financial advice ensures you’re making the most of the resources to help you manage your aged care journey.
Need help getting started with aged care services? Contact our friendly team to learn more about how we support families through the transition to aged care, with compassion, clarity, and care.
