Research into retirement homes pays off
CHOOSING an aged care home can be a daunting prospect, with expensive repercussions if not approached properly.
Financial planner Stephen Jenkosky, director of Golden Age Advisory, said seniors should research extensively before settling on a retirement home.
“Nobody can deny that aged care is an extremely complicated area and it really requires a specialised knowledge,” he said.
“Much more than can be obtained by a casual observer reviewing some websites and attending a few information sessions.”
Mr Jenkosky recommended asking facilities if they were willing to negotiate the Accommodation Payment, or RAD as it is called. They may also be willing to negotiate additional services, he said.
“If the facility has a long waiting list of people who are willing to pay the asking price, they may not negotiate on the price,” he said.
“But if the facility has a number of beds available, they are usually more willing to accept a lower price.”
Mr Jenkosky said there were many government agencies that provided support for those looking at retirement facility options.
“In addition to My Aged Care ( myagedcare. gov. au), there’s the Department of Human Services, who provide information about payments, concession cards and the Financial Information Service ( humanservices. gov. au),” he said.
“Department of Social Services is responsible for Age Pension policy ( dss. gov. au) and Department of Veterans Affairs provide information for those who have served in Australia’s armed forces ( dva. gov. au).”
Mr Jenkosky said one of the mistakes some seniors made was failing to identify the “outgoing” costs of a retirement home.
“You’re going to need to forecast what the value of that unit will be when you’re going to leave,” he said.
“My advice there is try and use a conservative forecast growth rate and do your sums progressively so that you can see if you live there for two years this is the cost, if I live here for five years this is the cost, 10 years etc.”
Mr Jenkosky said when leaving a retirement home, residents need- ed to bring that unit up to “market standard”. That could mean anything from a coat of paint and new carport or a new kitchen, airconditioning and new carpets.
“And a one- bedroom apartment can cost you $ 60,000 to reinstate and that’s as well as the exit fees and the fees you’ve paid along the way,” he said.
“Something you should get an estimate for before you move into the retirement village. The costs are transparent but aren’t always forthcoming. You just need to ask the right questions.”
Seniors should also look out for “dodgy” retirement and nursing home operators.
“Fostering a profit- driven environment that leads to substandard care, while at the same time overworking and resisting wage increases for staff,” he said.
The information contained in this newspaper article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs.
Steve Jenkosky trading as Golden Age Advisory is an Authorised Representative of Synchron, AFS Licence No. 243313