Don’t settle when settling down with our complete guide to finding the right retirement home.
Making the decision to move into a retirement home or helping a loved one navigate this stage of life can feel overwhelming. The Australian system is complex, with various options available, each having different costs, services, and care levels. To ensure the best decision is made, it’s essential to be informed about the choices and know where to find the right advice.
Understanding the Types of Retirement Homes
There are different types of retirement living in Australia, depending on the level of care needed. Generally, they fall into three main categories:
- Independent Living Units (ILUs): These are designed for those who can live independently with minimal assistance. ILUs offer a community atmosphere with access to social activities and common facilities.
- Assisted Living or Serviced Apartments: For those who need help with daily activities such as housekeeping or meals, assisted living is a step up from independent units.
- Residential Aged Care (Nursing Homes): This option provides 24-hour care for those with higher medical or care needs. The government helps subsidise these costs, but there are fees involved, which vary based on income and assets.
How to Budget for Retirement Homes
The cost of retirement homes varies widely depending on the location, the type of accommodation, and the level of care required. The expenses typically include:
- Entry Fees: Some retirement villages charge a large upfront payment called a ‘buy-in’ fee or ingoing contribution.
- Ongoing Fees: These are regular payments for maintenance, utilities, and services such as housekeeping or health care.
- Exit Fees: Often, retirement villages charge an exit fee or ‘deferred management fee,’ which can be a percentage of the sale price of the unit.
Getting Government Support
The Australian Government offers subsidies for those moving into residential aged care, but understanding eligibility and how to apply can be tricky. Start by completing an Aged Care Assessment Team (ACAT) assessment. This is the key to accessing government-funded aged care services. To arrange an assessment, go to their website here.
Once the assessment is complete, it will outline what type of support the government can provide and which facilities are suitable. It’s important to compare facilities and services to make sure it meets the needs of you or your loved one.
Seeking the Right Advice
Making decisions about retirement homes is not something to do alone. Seek professional advice from financial advisers who specialise in aged care planning. National Seniors Australia provides a helpful resource at their website here. They offer practical advice for both planning and living in retirement, including accessing care services.
In addition, you can consult an elder law specialist to understand legal rights and protections. The Legal Aid NSW website has some excellent resources to help families navigate aged care contracts and financial agreements.
Navigating the retirement home system in Australia is not a simple process. But by understanding the types of care available, considering the financial implications, and seeking the right advice, you can ensure you or your loved one finds the best solution. And when planning for the next stage of your life, here are the Five Money Tips Things to Consider Before You Retiring. And learn if you should get insurance through your superannuation fund here.
