Hi Tammy, my kids are worried about me living alone, but I am not going into an old people’s home. Can I stay in my house? Frank, Collaroy Plateau
Hi Frank, absolutely, provided it continues to be safe and healthy for you to do so. Luckily there is home support which is designed to keep you in your home longer. Having this support may also alleviate the concerns of your loved ones. The other main consideration is affordability, as a large pool of capital will remain tied up in your home. This is where a financial adviser can help evaluate your options. For lifestyle or affordability reasons, it may be necessary to consider alternative homes. This could be an apartment, over 55s living, retirement village – or residential aged care, should the need arise. The first step though is to get home support in place.
Start support early
Home support is designed to keep you strong, healthy and independent for longer. Injuries and falls are common triggers for moving into residential aged care, but so are worn-out joints and poor nutrition. Contact My Aged Care to arrange an eligibility assessment. There can be long waiting times, so it’s important to get in the queue.
The new Support at Home program
From 1 July 2025, the Support at Home program will replace the current Commonwealth Home Support and In Home Care packages.
There will be eight classification levels for ongoing care, allowing a smoother progression up the levels as your needs change. You receive a quarterly budget which you choose how to spend on a range of approved services.
Your contribution to this cost will depend on the type of services received and your ability to contribute (as determined by your income and assets).
Services will be divided into three categories:
- Everyday living: Such as cleaning, laundry and, gardening. Your contribution for these services is higher, ranging from 17.5% for a full pensioner, up to 80% for a fully self-funded retiree.
- Independence care: Such as personal care like eating and hygiene; transport and social support. Your contribution for these services is lower, ranging from 5% for a full pensioner up to 50% for a fully self-funded retiree.
- Clinical care: Services provided by a health professional for physical and cognitive care, such as nursing and physiotherapy. Fully funded by the government.
There is a lifetime cap on your contribution of $130,000 (indexed). Once you reach this cap, you will not pay anything further. This lifetime cap also carries over and applies to certain residential aged care costs.
Quick tips: Everyone is entitled to care. You are only asked to contribute what you can afford; however, the value of your home is included. This means you may need to draw value out of your home to pay for care to help you stay in that home. This is a conundrum a financial adviser can help navigate. Existing Home Care package recipients are guaranteed to not be financially worse off under th e new Support at Home system.
Need advice tailored to your situation? Feel free to call me on 8376 0350 if you have any questions or need assistance.
Regards, Tammy
Financial planner Tammy Marshman of Up Wealth Management is an Authorised Representative of Consultum Financial Advisers Pty Ltd, AFSL 230323.
Phone 8376 0350 or visit upwealthmanagement.com.au
Any advice or information in this publication is of a general nature only and has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your personal objectives, financial situation and needs.