Ageing parents? Know your options

Life can be busy and complex for the ‘sandwich generation’ who find themselves stuck between caring for children and ageing parents or relatives. Aged care issues creep up on families because, let’s face it, no one wants to get old – but if we are lucky, we will.  The sense of panic arising from an aged care event, such as a fall or diagnosis of dementia, within a family can be avoided with thoughtful consideration of the following now:

• What does the home setting currently look like and how viable is it for an ageing parent to live in?
• What care supports are available if something either happens suddenly or their health declines over time?
• What financial resources are available to keep a parent at home safely
• What legal documentation is in place for you to act if your parent is suddenly incapacitated and requires family intervention and support?

Most people want to stay in their home so the first decision to be made is how suitable is their home for their future years when mobility may be an issue. Some considerations might be to downsize, either into a smaller unit or into retirement living, or modify the existing dwelling and access home care services. Both options need careful analysis and planning to ensure financial viability and that your parents are getting maximum benefit from the aged care system.

In terms of care support, a good starting point for your parents is to arrange an assessment with My Aged Care. My Aged Care is a government initiative to act as a central access point for home care, respite care, and residential care for those over 65. Through this service, your parents can be granted access to home care packages with government funding ranging from $11,000 to $78,000 per year.

There are many misconceptions about home care packages. Some of these include:

“I have too much money to get a home care package” Home care packages are allocated based on a person’s health, not wealth. Whilst a person may be asked to co-contribute financially towards their package (based on means-testing), the amount of funding they receive to spend on home care is based upon their care needs in the home. “I will lose my independence by getting care at home” Home care packages are designed on the principle of providing consumer-directed care to keep the recipient safe in their home. People can choose their home care providers and the services they receive, with options to alter this at any time. If used correctly a home care package enhances independence and, in some cases, slows the rate of health deterioration.  “It takes so long to get a package; I will never get one” In the past, there have been long wait times for home care packages. However, the Government is set to release an additional 80,000 home care packages from 1 July 2025 and the sooner your parent is assessed, the sooner they could get a package. There is also nothing stopping a person from accessing home care services privately, to then overlay this with their home care package funding when it becomes available. “I will have to contribute significantly to my home care package” It’s true that financial co-contribution to home care packages will increase after 1 July 2025. However, total private contributions sought by the system as a whole are only increasing from 5% to 11%, with the Government continuing to fund the remainder. It remains a generous system for the benefit received. “I’m already getting help at home privately so I don’t need a package or will not get one” You can self-manage your home care package, allowing you to select your own service providers. Their invoices can then be deducted directly from the government funding provided in your package which could save you money on your current expenses.

To help make decisions about the home or what care support to access, it’s important to know the financial resources your parents have available. In some cases, parents may be reluctant to share their financial information and, if this is the case, we recommend you strongly encourage them to speak with a financial advisor that regularly practices the provision of aged care advice.

Financial co-contribution to home care packages will become more complex from 1 July 2025 with co-contribution rates varying depending not just upon a person’s wealth but also upon what type of service they are accessing.   

Financial advice can provide a greater understanding of the sustainability of your parents’ financial resources as they age and require more help at home, potentially transitioning to residential care.  It can also safeguard family capital throughout this process. 

At Partners Wealth Group, we aim to help our clients live their best lives. For some clients, this means being able to remain living safely in their home as they age. For this reason, we have a dedicated aged-care financial advice team that helps people navigate the aged-care system. If you, your parents, or your relatives need assistance, you can read more about Aged Care Financial Advice or contact us if you’d like to discuss your situation. 

 

This information is general in nature and is provided by Partners Wealth Group. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.