Getting aged care advice? Ask these five questions first

6 hours ago 4

When it comes to aged care, the decisions you make – where to live, how to fund care, and what to do with the family home – can have significant financial and emotional consequences. That’s why getting advice matters.

But not all advice is created equal. Before you commit, here are five questions you should ask:

When it comes to aged care, the decisions you make can have significant financial and emotional consequences.

1. What qualifications and experience do you have? Aged care advice isn’t part of every adviser’s toolkit. It’s a specialist area involving a unique mix of financial, legal, and government systems.

Ask what qualifications the adviser holds, how they keep their knowledge up to date and how often they provide aged care advice. Do they understand the Centrelink rules, aged care fees and estate implications? How often do they provide advice – is this something they do every day or only a few times a year?

2. Can you advise on all my options? Many people think aged care advice only applies when moving into an aged care home. But more than 80 per cent of people receiving aged care live somewhere else.

Ask whether the adviser can help you weigh up a move into a retirement village, a granny flat arrangement, or accessing home care. These options come with different legal and financial complexities and can impact your ability to fund residential aged care in the future.

Aged care is one of life’s biggest decisions. When looking for the right adviser, take the time to understand their qualifications.

An adviser who can only discuss residential aged care may miss opportunities to support you earlier – or suggest better alternatives.

3. What kind of advice will I get? It’s crucial to know whether you will be receiving personal financial advice or just information related to your circumstances.

Financial advice considers your financial situation, needs and objectives and provides clear recommendations which may include financial products. Your financial adviser is legally bound to act in your best interests.

Information related to your circumstances, on the other hand, may help you understand your options but may not cover all of them, it won’t recommend what you should do, and it may not be in your best interest.

If you want someone to help you make decisions – not just explain the system – you’ll need personal financial advice.

4. How much does the advice cost, what value will I get? Financial advice isn’t free, and nor should it be – it can save you tens of thousands of dollars. But it’s important to understand what you’re paying for and what you’re getting in return.

Your adviser should be upfront about their fees and clear about the value of their advice. A simple way they can do this is by comparing your position with advice to what it would look like without it, the value should be measurable.

5. Does your advice consider what happens after I move into care? Aged care is not a set-and-forget decision. Circumstances change – homes may be sold, pensions can be lost and fees may change.

Good advice takes the next steps into account. A good adviser is one who understands the realities of aged care – and supports you beyond move-in day.

Aged care is one of life’s biggest decisions. When looking for the right adviser, take the time to understand their qualifications, what kind of advice they’re giving you, what it will cost, and how it will help, now and into the future.

Rachel Lane is the author of Downsizing Made Simple, a book and website aimed at demystifying downsizing.

Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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