Articles for your marketing team to use to send to your COI’s.
Downsizing is an exciting time that normally sees significant changes to your lifestyle and your budget. Here are my top 5 tips for anyone thinking about downsizing. 1. Find a community you want to be a part of While normally in real estate the advice is “location, location, location”, and proximity to family and friends and amenities is an important aspect, a big part of your enjoyment in a retirement community will be the interactions with other residents – to quote a great Australian movie “it’s the vibe” – get to know the other residents by attending open days and other village events. 2. Understand your contract Your legal ownership has wide reaching implications so it is important to know what it is, what rights and responsibilities are attached to it (including after you leave) and the impacts on your pension entitlement and eligibility for rent assistance. 3. Do your sums. The costs of moving to a retirement community can vary widely. If you are comparing the costs of moving to one or another it may help to break the costs into three categories: the ingoing, the ongoing and the outgoing. 4. Have a budget And make sure that it
If you have searched for the answer to “How much can an aged care resident pay for care?” you will invariably end up with an answer that is $X “up to the cost of care”… So what is “the cost of care”? In a nutshell the cost of care is the amount that the facility would receive from the government if the resident paid nothing. Here’s how it works. The primary funding source for aged care facilities is the Aged Care Funding Instrument (ACFI). The ACFI designates a level of funding based on the resident having care needs that are Nil, Low, Medium or High in three domains: Complex Healthcare, Activities of Daily Living and Behaviours. On top of the ACFI aged care facilities can also receive supplements for “care extras” like oxygen and enteral feeding. If a resident had care needs of Medium in all domains, the ACFI for that resident would be $143.78 per day. ACFI Level Activities of Daily living Behaviour Complex Health Care Nil $0.00 $0.00 $0.00 Low $36.65 $8.37 $16.37 Medium $79.80 $17.36 $46.62 High $110.55 $36.19 $67.32 Why does it matter? Well for some residents they will get a pleasant surprise when they discover
For many years couples entering aged care were often advised to move in on separate days, this simple but effective strategy often meant that the first person qualified as a Low Means resident while the second paid the market price. But as the Maximum Permissible Interest Rate drops the Refundable Accommodation Contribution (RAC) becomes more expensive, in some cases more than the market price. When it comes to aged care everyone has the choice of paying towards the cost of their accommodation by a lump sum, daily payment or a combination of the two (you can even deduct your daily payment from your lump sum if you choose). For people who pay the market price, the lump sum amount is set by the facility and requires approval if it is above $550,000. The daily payment is calculated using a government set interest rate, known as the maximum permissible interest rate (MPIR) and is charged on any amount of unpaid lump sum. For example if the market price was $500,000 and some paid $200,000 by RAD then the DAP would be $40.36/day Low means residents can pay a Daily Accommodation Contribution (DAC) which is calculated by a means assessment which takes