Your Financial Guide to Aged Care. Report by Affinity Aged Care, 1 October 2016

Your Financial Guide to Aged Care. Report by Affinity Aged Care, 1 October 2016

For most of us, growing older means at some stage we will find it difficult to manage our day to day living activities. You may feel you need help, or you may care for a friend or family member who needs help, but you don’t know where to start or what assistance you can access. There are many different types of aged care services available to support you whatever your needs, including Residential Aged Care. The information contained in this booklet is based on rates and thresholds current as at 1 October 2016. Full Report...
Will you RAD, DAP or both?

Will you RAD, DAP or both?

Like all major investments, how to pay for your preferred residential accommodation facility will be one of the biggest financial decisions of your life. If you have done your research you’ll know the two main ways to pay for your preferred facility is through a Residential Accommodation Deposit (RAD) or a Daily Accommodation Payment (DAP). But which is the best option for you? Affinity Aged Care Senior Adviser Robert Craven said the right payment option entirely depended on the individual. “There are so many things to consider when you decide how best to pay for residential care, and as one of the biggest investments of your life it is so important to factor in all your personal circumstances,” Robert said. Robert said for many, the decision on how to pay for the facility came down to the question of what to do with the family home. “If you decide to sell the family home, you may automatically think that paying by RAD is your best option, but it is important to remember there may be an interim period where limited funds are available. “In this situation, you may need to pay by DAP pending the sale.” Robert said that if the home was retained and a significant proportion of the accommodation cost was to be paid by DAP, a monthly drawdown from the equity in the home may be possible to fund any shortfall. “In some cases you may prefer to pay a RAD to secure the facility of your choice and you may have liquid assets to fund this without selling the home. “In other circumstances may make...
Pension entitlements: what counts?

Pension entitlements: what counts?

One of the most important considerations when making the decision to move into a residential care facility is the impact on pension entitlements. Affinity Wealth Aged Care Senior Adviser Robert Craven said making a decision on what to do with your assets could have a negative impact on your full pension entitlement. “Among the considerations in assessing a pension entitlements include whether the family home will be sold or retained, any rental income from the home and whether there is a Residential Accommodation Deposit (RAD),” Robert said. “The good news is a RAD is an exempt asset when assessing pension entitlements, which makes paying a RAD an attractive option for some people.” Robert said that the family home tended to hold a lot of focus for his clients because it was often their main asset. “The former home can be an assessable asset two years after the transition into permanent residential care,” Robert said. “Rental income from the former home can also be assessed when calculating pension entitlements. “However, there are some circumstances where the home and rental income can be exempt, so it is really important that you clarify this with a qualified financial advisor before making any big decisions,” Robert said. Robert said he saw enormous diversity in his clients’ individual circumstances and it was crucial to take everything into consideration to avoid making costly mistakes. “I see so many different sets of personal circumstances when it comes to assessing pensions which is why everyone considering the transition should take the time to talk to a trusted adviser and really clarify what will give them the best...