When most of us think about retirement, we picture travelling, enjoying hobbies, or spending more time with family. But for many Australians, the later stages of retirement involve making decisions about aged care. Whether it’s home care support or moving into residential care, the financial and emotional implications are significant.
Planning ahead for aged care isn’t just about covering costs — it’s about protecting your independence, dignity, and quality of life. By being proactive, you reduce stress for yourself and your loved ones, while ensuring you have the resources and flexibility to make choices that align with your values.
Related article: Planning for Retirement – How much Do I need?
Understanding the Costs of Aged Care
Aged care in Australia is means-tested, which means your income and assets will influence how much you pay. Costs vary depending on whether you receive home care packages or enter residential aged care.
Typical expenses may include:
- Basic daily fees – Covering meals, cleaning, and laundry.
- Means-tested care fees – Based on your income and assets.
- Accommodation payments – Either refundable deposits or daily payments.
- Additional services – Such as higher-quality meals, extra activities, or private rooms.
Without planning, these costs can eat into your retirement savings or require the sale of assets like the family home. That’s why integrating aged care planning into your broader retirement strategy is essential.
The Role of Superannuation in Aged Care
Superannuation is often the biggest financial asset Australians rely on to fund retirement. But how it’s accessed and structured can have a big impact on aged care affordability.
Some strategies to consider include:
- Account-based pensions – Providing a flexible income stream that may help cover ongoing aged care fees.
- Maximising concessional contributions before retirement to boost your super balance.
- Transition to retirement strategies, which can help supplement income in the lead-up to retirement while preserving super.
By aligning your superannuation strategy with potential aged care needs, you can ensure your retirement savings are working effectively across every stage of life.
Protecting Your Assets and Estate
Aged care planning isn’t just financial — it’s also about ensuring your wishes are respected and your legacy is preserved.
Key steps include:
- Updating your Will to reflect how you want your assets distributed.
- Setting up an Enduring Power of Attorney (EPOA) so a trusted person can make financial decisions if you can’t.
- Advanced care directives, which outline your preferences for medical treatment and care.
- Considering trusts or gifting strategies, which may help protect assets while still ensuring eligibility for government support.
Legal and financial planning go hand in hand. Seeking estate planning advice early can prevent rushed, stressful decisions later on.
Supporting Your Comfort and Dignity
Finances are only one part of aged care planning. Your comfort, lifestyle, and dignity should always come first.
Ask yourself:
- Do I want to remain at home for as long as possible?
- What type of care environment would suit my personality and preferences?
- Are there specific services (like physiotherapy, social activities, or cultural support) that are important to me?
By documenting your wishes early, you empower yourself and provide clear guidance for loved ones when decisions need to be made.
Common Mistakes to Avoid
When it comes to aged care planning, some common pitfalls can undermine your financial wellbeing:
- Waiting too long – Leaving decisions until a health crisis can limit your options.
- Not seeking advice – Professional financial advice can help you structure assets and income more effectively.
- Overlooking Centrelink benefits – Many people miss out on payments or concessions they’re entitled to.
- Failing to communicate with family – Open conversations reduce misunderstandings and stress later.
Taking a proactive approach avoids these mistakes and helps you feel more in control.
How Retirewise Can Help
At Retirewise, we understand that planning for aged care can feel overwhelming. Our experienced financial advisers can guide you through:
- Structuring superannuation and investments to cover aged care costs.
- Navigating Centrelink entitlements and government support.
- Protecting your assets and estate while maintaining flexibility.
- Building a holistic retirement plan that includes potential aged care needs.
We take the time to understand your personal values, financial situation, and goals — so your plan is as unique as you are.
Aged care planning is about more than numbers — it’s about safeguarding your comfort, dignity, and peace of mind. By preparing early, you ensure you have the financial security and flexibility to make the choices that matter most to you.
If you’d like help navigating the complexities of aged care and retirement planning, the team at Retirewise is here to support you every step of the way.
👉 Contact Retirewise today to start planning with confidence and protect your future.