Fac­tor in aged care costs

Money Magazine Australia - - THIS MONTH -

If you are work­ing out how much you need to save for re­tire­ment, don’t for­get the costs of aged care. This is not just the cost of res­i­den­tial care; it should also in­clude care in the home or sup­port ser­vices to help you live in­de­pen­dently as you age.

Fac­tor­ing in the costs of aged care is be­com­ing in­creas­ingly im­por­tant with the emer­gence of home care, in­creas­ing longevity 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.

The costs of aged care have been ac­cel­er­at­ing and are likely to con­tinue to in­crease at a rate higher than in­fla­tion. Home care costs can be dif­fi­cult to pre­dict and can vary from $100 to $5000 a week, de­pend­ing on your per­sonal needs and fam­ily cir­cum­stances.

Ac­cess to gov­ern­ment sub­si­dies helps 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.

If you ig­nore the costs of aged care when plan­ning the ad­e­quacy of re­tire­ment sav­ings, you may fall short of pre­dict­ing your real re­tire­ment in­come needs and run out of money too early.

Assyat David, di­rec­tor, Aged Care Steps

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