Keeping your pension
During family discussions regarding the cost of residential aged care one frequently asked question is 'will Mum/Dad lose any of their pension?"
Any discussion about the age pension involves Centrelink assessment rules and whether you are above or below various asset and income thresholds. You can view the current Centrelink rates here (current as at 20 September 2015).
Maximising a person’s age pension entitlement is a key focus of aged care advice, however even more important is your bottom line. In other words, after paying your expenses how much cash will you have left?
Your cashflow is impacted by the amount of income you receive (including the age pension) and also by your expenses.
Expenses are usually made up of the basic daily fee, daily accommodation payment (where applicable), means tested care fee and lifestyle. Everyone pays the basic daily fee and your lifestyle expenses are what they are; so reducing expenses revolves around lowering or removing your daily accommodation payment and/or minimising your means tested fee.
When considering how best to fund the cost of your aged care, any advice you receive should present a number of alternate options that show the impact on your cashflow if you had to rearrange your assets and employ different payment strategies for your accommodation cost.
While maximising your pension is always desirable, it should not be done at any cost.
To find out how to get financial advice that can help you minimise your expenses in aged care, contact a financial adviser who specialises in aged care advice.
Whether you are already in care, or planning a move into an aged care service and are unsure about what to do with the family home, talk to a financial adviser who specialises in aged care advice.
Contact David Codey (pictured above) from the Morgans Aged Care Advice Team on:
Alternatively contact your Morgans adviser
or your nearest Morgans office
to find out more.