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Retirement and aged care providers – how to choose wisely

Announcement posted by i.e. Community Partners 28 Jun 2017

Informed choice and forward planning are critical to avoiding the potential pitfalls of retirement living and aged care, according to the founder of dailycare.com.au Tull Roseby.

“Choosing to move into a retirement village or aged accommodation with greater support can be challenging,” Mr Roseby says. “Not only is it usually a time of significant emotional change, the financial complexity can be overwhelming.”

Mr Roseby, who founded dailycare.com.au to help Australian’s explore and assess aged care options, says making the wrong decision can have long term financial and emotional impacts.

“We need to think of planning for your later years like planning for education,” Mr Roseby says. “You wouldn’t just turn up to the closest school when your child turns five – you research the options and make informed choices where you can.”

He says it’s important to start early, before a living situation turns critical.

“Decisions are often made hastily when a crisis emerges,” Mr Roseby says. “But the more time you have to work through the options, the better chance you have of making the right choice. Advance planning with a clear head, and ensuring you have the paperwork checked by the appropriate professionals, are the best safeguards.”

He says there is a great variety in the market between providers and fees can differ dramatically.

“The cost of purchasing a retirement unit, may impact the affordability of future home care services and residential aged care should you need it. Costs can vary significantly, and may be influenced by location, facilities, quality and other fees,” Mr Roseby says.

“Once you’ve moved in, ongoing costs also range significantly, and have the potential to dwindle your life savings away.”

He said understanding the complex fees you may face through the journey of retirement and potentially home care into residential care is critical to financial security.

“Refundable accommodation deposits (RAD), exit fees, and ongoing fees and charges, are particularly complex. Fees may also increase over time.

“You may be required to pay up-front, or soon after you move in, or they may be spread over a number of years. There are numerous options available for those who do their research,” he says.

Information is key, with sites such as dailycare.com.au helping to explain and assess options.

Mr Roseby offered these tips for avoiding some of the pitfalls of retirement living and aged care:

·       Look around and inspect a number of facilities, take your family or friends along and ask lots of questions.

·       Make sure you understand and can afford the long-term financial impacts of fees and charges.

·       Consider all your options, not only for your needs today, but the level of support you are likely to need in the coming years.

·       If you don’t understand the contract, don’t sign it and find a trusted adviser to guide you.

·       Make sure you get any promises or other commitments in writing.

·       Seek out information from trusted sources such as Dailycare.com.au or engage professional help such as an independent financial adviser or aged care placement consultant.