Financial planning that aims to build the current and future wealth and prosperity of the whole family must encompass the needs of everyone: children, parents, and grandparents. When financial planning is considered an intergenerational family obligation that spans all generations – young to old – then the whole family can not only gain wealth but protect it from unforeseen circumstances.
To date, we have covered the importance of insurance and superannuation when building and protecting the wealth of the whole family group. In this article, we examine why now is the time to consider your aged care needs as well as those of your older family members.
#3 Plan early for aged care
In the 20 years between 1996 and 2016, the proportion of Australians aged 65 and over increased from 12.0% to 15.3% while the proportion of people 85 years and over almost doubled from 1.1% of the total population to 2.0%.1
Because we’re generally living longer, most of us are likely to need aged care services. This is supported by research indicating that the number of people in aged care has increased by 31% since 2006.2
The reality of the costs of aged care may be confronting and, if you are unprepared, could fall to your children and grandchildren.
To help make your aged care costs both affordable and efficient, it’s important to seek advice and consider strategies that may take into consideration Government funding for residential aged care and the appropriate structuring your assets, which may be means tested.
The key is to seek advice early to have an understanding of the strategies that may be implemented. Considerations may also include investment strategies that aim to fund aged care residential and nursing expenses; money management for pensions; funds held in superannuation; and tax efficiencies.
Other important decisions may relate to retaining or selling the family home, funding funeral arrangements and attending to powers of attorney when older family members are no longer able to make their own decisions.
Financial planning aims to enable you and your older relatives to enjoy quality aged care and financial self-sufficiency rather than being forced to financially burden you or your offspring.
For subsequent generations, early planning for this inevitable stage of life is key for the safety and comfort of elderly relatives. It is important to recognise that such planning preserves the prosperity of the entire family group.
To find out more about planning for aged care and other strategies that aim to grow and protect the wealth of your extended family, please contact Brett, Steve or James on 3007 2007 or firstname.lastname@example.org, email@example.com or firstname.lastname@example.org
1http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3101.0Feature%20Article1Jun%202016, accessed 13 Feb 2018.
2 https://www.gen-agedcaredata.gov.au/Resources/Factsheets-and-infographics/People-using-aged-care-services.pdf?ext=., accessed 13 Feb 2018.
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Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Stratus Financial Group strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
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