Aged Care Financial Advice

When it comes to paying for accommodation in aged care facilities, there are several options available. Residents can opt for Refundable Accommodation Deposits (RAD), where they pay a lump sum that is refunded when they leave, or Daily Accommodation Payments (DAP), which are ongoing rental-style payments. Alternatively, they can choose a combination of RAD and DAP, or opt to pay the DAP from their RAD balance. For those who qualify as low-means residents, there's an opportunity to receive an accommodation contribution subsidised by the Federal Government, which means they won't have to pay the accommodation payment directly. Understanding the financial implications involves grasping how the basic daily fee and means-tested fees are calculated. These fees can impact Age Pension benefits and cash flow significantly. In terms of financing initial costs and ongoing fees, families have various options to explore, including personal savings and selling assets. Additionally, there are considerations regarding the family home. Each option carries its own set of financial and emotional implications, and families should carefully consider their choices based on their individual circumstances.