Retirees leave their fate to chance if they decide to enter aged care without accessing the best aged care financial planning services.
Of course there can partners, next of kin and close friends and family members who can offer advice and give their opinion on the subject, but they won’t have the grounding to be able to make this transition as smooth as possible.
Here we will detail some examples of retirees getting it wrong when they don’t seek expert assistance.
Struggle Understanding Inherent Costs
There are a number of various costs that have to be incorporated during this transition for retirees. Leaving these elements to a home or unknown third party can be risky and it is always best to have aged care financial planning experts available as a sounding board in these circumstances.
They will outline how the accommodation payment can be formulated, featuring a daily accommodation payment (DAP) or a refundable accommodation deposit (RAD). Then there is the basic daily fee that covers most of the daily duties, a rate that changes in accordance with the Age Pension. Finally there is the means-tested care fee to cover the assessment. How these fees can be incorporated through a single account is a subject that only a professional can truly negotiate.
Limited Ability To Look At Investment Opportunities
The topic of aged care and investment through the stock market has been the subject of much debate in the public sector of late. With different government bodies weighing in on their approach, it is necessary to have aged care financial planning experts on hand to understand this landscape and identify where a portfolio can be diversified. These practitioners can source methods that allow retirement savings to go to work and expand in value, but finding those opportunities takes a trained and experienced eye for detail.
Limited Options For The Family Home/Estate
Planning for an estate and managing aged care financial planning duties can go hand-in-hand for clients that have to find a delicate balance. In one aspect they have to look after their short-term future with carers available for their medical needs. In another, they have to ensure that their property is in safe hands to be passed down to a partner or next of kin. Retirees are taking a risk if they make a judgment on instinct or face value, overlooking the benefits of a straight sell, renting the premises or engaging a reverse mortgage.
Complications With Social Security
Aged care financial planning becomes incredibly complicated for single retirees who have to engage Centrelink off their own accord without any type of assistance. Making the transition to an aged care facility will impact upon any Centrelink transactions and it is crucial that there is an expert practitioner who can communicate between the various departments. Being left alone in these circumstances is far from ideal, particularly if account names and numbers have been lost.
Relying on Inexperienced Advice
The final risk that retirees take into their own hands when avoiding the expert assistance of aged care financial planning operators is relying on advice from inexperienced parties. On a very basic surface level, these practitioners help clients to understand how aged care actually works, providing detail and assurances that combat some common misconceptions about the industry.
The good news for clients who engage with aged care financial planning services is that they don’t need to enter into any types of contracts or agreements that cost them money. These outlets are expected to provide obligation-free discussions that shed light on the practice and allow individuals to formulate their own opinions and feelings on the transition. Should they wish to progress the professional relationship and open up new opportunities, then their counsel will become a valuable commodity.