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As we and our loved ones get older, a time will come when we will need to make a decision regarding assistance living (i.e. hostel or nursing home). The costs for such accommodation are increasing and depending on a formal assessment by ACAT (ages care assessment team) these cost could either be an initial lump sum (hostel accommodation) or significant daily costs (nursing home). Hence, you need not only awareness and understanding of your options, but it is critical to plan in advance before making such decisions.
<img src="/images/stories/2012/06/chanjune22.gif">
Trends within Australia - Ageing Population 
<ul>
<li>By 2051, more than 25% of the population will be aged over 65* </li>
<li>The number of people over 85 expected to more than quadruple to approximately 1.8 million**</li>
<li>June 2006 estimated^^:</li>
</ul>
–      72,600 people were in high-level aged care services (Nursing Homes)
–      14,400 people were in low-level care (Hostels)
–      80,000 people were in mixed high/low facilities 
* Access Economics, 2001. Population Ageing and the Economy, research paper commissioned by the Commonwealth Department of Health and Aged Care, ACT.
**Treasury’s Australia 2050: Future Challenges (2010 Intergenerational Report).
^^ Aged Care Commissioner, 2009. 
Productivity Commission Report (released 28 June 2011)
“Over 1 million older Australians receive aged care services. The range and quality of these services have improved over past decades, but more needs to be done. Future challenges include the increasing numbers and expectations of older people, a relative fall in the number of informal carers, and the need for more workers. By 2050, over 3.5 million Australians are expected to use aged care services each year.” 
 
 
Ages care issues
 
When faced with making such decisions either for yourself or for loved ones, it is important to plan and consider the following issues;
 
<ul>
<li>Maximising Centrelink entitlements – age pension</li>
<li>Strategies to minimising aged care costs</li>
<li>Funding gaps /  protecting assets – What to do with the family home</li>
<li>Estate planning</li>
<li>Taking into account flexibility</li>
</ul>
The five steps to entry into aged care 
Step 1 - Assessing eligibility (ACAT)
Step 2 - Finding an aged care home that’s suitable
Step 3 - Work with a specialist adviser to discuss strategies when working out accommodation cost
Step 4 - Applying for entry
Step 5 - Moving into a home
 
 
Summary
 
Age care planning is complicated, but essential to achieve the best financial outcome. Things to consider are wide and varied like Centrelink entitlements, funding of the Aged Care costs, protecting assets, should the primary place of residence be retained or sold? All this plus the emotional challenges can take its toll, so again, the better the planning before hand and by following the five step process above, you stand a much better chance in making the twilight years of a loved one as pleasant as possible.
David Hasib is director of <a href="https://www.chan-naylor.com.au/financial-planning/?FrontendLogin=00BDCF5DC83F6808C47AEBFF8485E62A&amp;uuid=841DE940-A7B7-A2F5-95E0F0E96F220737">Chan &amp; Naylor Financial Planning</a>
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David Hasib

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