When you or a loved one require long-term care, the costs can be overwhelming. In Australia, the cost of home care and residential care can be expensive, and many people worry about having to sell their home to pay for care. Fortunately, there are strategies you can use to avoid selling your home.
Understanding the Costs of Care
The cost of care in Australia can vary depending on the services required. Home care services typically cost around $50 per hour, while residential care can cost anywhere from $400 to $1,000 per day. It’s important to research different options and understand what is available before making any decisions.
Strategies to Avoid Selling Home
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Government Assistance: Depending on your financial situation, you may be eligible for government assistance. The Department of Health and Ageing offers a range of financial support for those needing long-term care.
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Private Insurance: Private insurance can help to cover the costs of care. There are a variety of different policies available and it’s important to research them before making a decision.
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Reverse Mortgage: A reverse mortgage allows you to use the equity in your home to fund your care. This option is best suited to those who have a lot of equity in their home and are over the age of 60.
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Seek Help: There are a range of organisations that can provide guidance and advice when it comes to paying for care. It’s important to seek help and advice from a qualified professional.
Selling your home to pay for care is not the only option. There are a range of strategies you can use to avoid selling your home and ensure that you or your loved one receive the best care possible. It’s important to research different options and seek help from a qualified professional to ensure you make the best decision for your situation.
Living longer is an incredible gift, but with it comes the financial implications of aging such as care expenses. In fact, in Australia, the cost of care is estimated to reach nearly $1 trillion by 2050. As a result, many aging citizens worry that they may need to sell their home to pay for care in the future. While this might seem like unavoidable fate, there are strategies you can take today to help you avoid selling your home later.
Save Where You Can
It’s never too early to start preparing for your future care expenses. Reflect on your current spending patterns to identify areas where you can save. Factor in your estimated care expenses into your budget and start putting aside a small amount of money each month.
Consider Aged Care Bonds
Aged Care Bonds, sometimes referred to as approved care funds or ACFs, are a form of prepaid care service. They allow you to set aside a sum of money today to pay for care costs in the future. It’s a great way to have your expenses covered up front or to supplement the fees you may owe, which can help you avoid selling your home.
Choose Home Care Services Over Residency
If you decide to transfer to a long-term care facility, consider choosing home care services over residency. Home care services allow you to have your care needs met in your own home. Not only is it more comfortable and personalized, but it also costs significantly less than residency. Therefore, you can save money and keep your home at the same time.
Speak To An Expert
It’s important to discuss the various care options available to you before making any decisions. Speak to an expert to review your finances and understand the best way to pay for care without having to sell your home.
It’s possible to pay for care without selling your home. By saving and planning ahead, you can make sure your financial security remains intact as you transition into a more independent and less stressful life.
