What happens if I use up my savings and can no longer afford to pay for care?
Most people find this does not become a problem.
Before accepting an offer of a place, you should check that you have enough assets to pay the Refundable Accommodation Deposit (RAD), ongoing income to pay the Daily Accommodation Payment (DAP), or enough to make a combination payment (part RAD / part DAP).
If you have lower means, you may qualify as a low-means resident and pay lower fees. Financial advice can help you to structure your finances to ensure you can continue to meet your payments.
The amount you contribute towards your ongoing care is based on your income and assets. If your income or assets reduce, your fees may also reduce or vice versa. The Government has also introduced caps on the means-tested fee to limit how much you will pay. There is a daily, annual and lifetime cap.
If circumstances beyond your control do place you in financial hardship, and you can't meet your ongoing fees, you can apply to the Government to have fees waived or reduced.
As an accredited aged care adviser, we can talk through the care options available to you, the costs associated with them and the best way to restructure your finances to pay for the appropriate care.
Disclaimer: Prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, Olive Grove Financial Advice recommends that you consider whether it is appropriate for your circumstances. Information in this article was correct and current as of 23 May 2022.
Olive Grove Financial Advice is operated by Bill Savellis through The Financial Advisor (Australia) Pty Ltd ABN 72 619 546 431, who is a Corporate Authorised Representative (No. 1278394) of Havana Financial Services Pty Ltd.