Throughout our lives we make choices about where to live, largely driven by lifestyle, work or family. However, as we get older our health or increasing levels of frailty may have a greater impact on these choices.
Homes come in a variety of shapes, styles and legal structures. Planning ahead and researching options can help you to make a well-informed decision when you think you need to move.
Where we live in our older years is not just a decision about physical location but how we can access care and support. It is important to understand what is affordable as well as how your daily routine can be managed.
Accommodation versus care
When care is needed, many people compare the option of a retirement village against residential aged care. While both provide supportive environments for older people, they are not complete substitutes. The funding and care implications are quite different.
Don’t view the comparison as just a property transaction based on price and size. For example, in a retirement village you may have access to a whole unit or villa, while for a similar price in a residential aged care service, you have only a single room. You should also think about how much support you need each day.
Retirement villages versus residential care
Retirement villages offer the opportunity to live in a community of older people. The village operator will maintain the external building and community garden areas, but it is still independent living. For an additional cost, you may be able to access support inside your home but services vary from one retirement village to the next, and unless provided through a Home Care package, costs are not subsidised by the Government.
Residential aged care bundles fully supported living and care together with accommodation. This care is provided 24/7 and the costs are heavily subsidised by the government. The table below provides a basic summary of some of the key comparisons:
The value of advice
Pulling together the information you need to make choices can be difficult and stressful for you and your family. Emotions can run high.
Giving yourself time by starting your research early can reduce stress levels and for an older person, can ensure their voice is heard more clearly. Call us today on for advice to guide you through the process and help to create effective solutions for you and your family.
IMPORTANT INFORMATION: This article has been prepared by Withani Consulting and Advisory Pty Ltd, ABN 78 112 589 976 in its capacity as a Corporate Authorised Representative of Nextplan Financial Pty Ltd, AFSL 452996, registered tax (financial) advisers (24813566) based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Withani Consulting and Advisory Pty Ltd and Nextplan Financial Pty Ltd makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at December 2020.