Financial Planning for Older People

5. Planning for Life and Preparing for End of Life

Topic 2 of 6

Where to start

Every decision about aged care has a financial component.

It is essential that our elders understand their financial position so that they will always be able to manage their future costs and cash flow.

These are the things to think about:

What are their income and assets now?
How can they make an informed guesstimate about their future costs and cash flow?
Are their bankers and insurers treating them fairly?
Are they entitled to any government assistance?
Are they getting it?

For a comprehensive guide read COTA’s Estate and Advance Care Planning Guide.

Select ‘Play’ to view what you need to know to get started.

Read the video transcript

Your goal is to make sure your elder has control and understanding of their financial situation, to make sure their care costs are met, and to help them be prepared for when things change. For example, when your elder cannot or may not wish to manage their own finances.

Get advice. Unless you are good with finance, it is recommended your elder get some expert advice. A good financial advisor who specialises in later life advice will give an overview of their financial position, explain how the government assesses their income and assets, and if they wish, help them put a second plan in place. They need not be expensive.

A good financial planner should keep your elders assets safe and accessible.

Ensure their assets are used to benefit their ongoing care and comfort. This includes making sure investments, including in super, are appropriate for their stage of life.

Ensure government assistance is maximised.

Rules change all the time, and it’s wise to have advice from someone whose job it is to keep on top of these changes.

Finally, keep the elder at the center of all discussions if they are still able and willing to make decisions.

Government support

All government support is predicated on income and assets testing and this can be complex. Not only do government rules and regulations change but also your elder’s financial situation can change.

To find out what financial information you need to provide the government to assess whether your elder is eligible for support, including a pension or part pension, here are some resources that should help.

Click on the titles to learn more about each.

Carer Gateway

Carer Gateway is an Australian Government initiative that provides free services and support to carers.

Call Carer Gateway on 1800 422 737 (press 1 at the menu). For information on planning ahead select this link to go to the Care2Plan book. This book will help you to support your elder in the way they choose if you cannot be there.

Moneysmart

Moneysmart is the government website on all things financial. If there are a lot of complexities with your elders’ financial affairs they have a great guide to finding a financial advisor who is licensed and advice on how to compare fees.

They also have tools to help plan a budget and a superannuation calculator, reducing debt and increasing savings.

Financial information service

The Financial Information Services Officer is there to support people with information to make informed decisions about finance. They have a wide range of financial knowledge and can also help with questions like ‘what happens if I move into aged care?’ For more information call Services Australia on 132 300 or go to their website by pressing this link.

Entitlements

A knowledgeable assessment of your elder’s finances will determine whether they qualify for support and what that support is.

If your elder is eligible for even $1 of the aged pension, what is called a part pension, this will enable them to access many supplements and concessions and entitlements.

Even if they do not qualify for a pension they may still be eligible for a Commonwealth Seniors Health Care Card (CSHC). This in turn will provide access to the Pharmaceutical Benefits Scheme (PBS). This can be a gift to any elders on multiple medications. The CSHC also entitles the holder to an Energy Supplement (ES).

For a guide to eligibility and entitlements select this link go to the Tasmanian Government Concession Guide.

What can you do?

If your elders are needing any Commonwealth services (pensions or part pensions, entitlements, concessions, subsidies or Support at Home assessments) they will need to contact Centrelink and My Aged Care. Remember this process can be complex and may need multiple calls. If you need help with the entire list – pensions and aged care – try the Aged Care Specialist Officer (ACSO) on 1800 227 475.

Move through the tabs for some tips to make the process as easy as possible.

1. Call and make an appointment

When you get through, ask for a reference number for your call.

Record this number and all calls, conversations, times of calls, and names of people you spoke with, in your notebook.

Tip: try calling at about morning tea or afternoon teatime.

2. Become a nominee

You will only be able to speak to Centrelink on your elder’s behalf if they give you authority to be their nominee. You will need to fill out a form. Look for the ‘Authorising a person or organisation to enquire or act on your behalf’ form. Any questions, call Centrelink on 132 300. See point one for the best time to call.