We are all getting older. The percentage of those reaching a need for care and assistance is greater than ever before.
The issue is none of us like to admit or face this. There are many options available with assisted living in your own home, retirement villages and nursing homes, but what is right for you.
Getting old is not fun, certainly when you lose capacity to look after yourself. Most people don’t want to admit this is happening, and leave it to the last minute. This causes everyone a lot of stress, yourself, your family and the system.
It is most likely that you will first come across this issue with your parents whom will not be able to make the decisions for themselves as they wanted to stay in their home for as long as possible.
Then you have a lot of the options taken away. The lists to get into the home of your choice are long or the only available rooms expensive. You find without planning for this your loved one is shafted well away from any family or friends because the only places available at the last minute are those least desired.
The payment structure for these accommodation options is also hard to get your head around as many acronyms are used; DAP, RAD and deferred management fees. DAP is a lump sum deposit to pay for the accommodation verses RAD which is paying on a daily rate, then a deferred means it is taken from your end capital. Then there is the question if you have to sell the family home to fund this accommodation. In most cases this is a very emotive decision.
The best thing to do is to have the discussion and research the options early. Where do you want your loved one to stay and where would they feel most comfortable? Where it is easy to give them the attention and services they need? Do they have enough assets to afford the options available they desire? If yes, lovely, you have a plan, but if no then what to you do about it. What other options would work?
Don’t hide behind a bush thinking your parents are immortal and can cope at home forever. I know they rarely let you bring it up but it’s in everyone’s interest to know they are safe and cared for when they need it.
If you have any questions or wish to get further information please let the staff at Ritchie Advice know we would be more than happy to sit down and work with you to determine exactly what the options are available and what is affordable.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.
Erin Gourlay
