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Increased Maximum Interest Rates for Aged Care

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The Maximum Permissible Interest Rate (MPIR) applicable to accommodation prices and to refund periods for refundable deposit balances and accommodation bond balances increased to 6.22% from1 January (to 31 March 2016 when it will be reviewed again). Aged care facilities have updated their published rates to reflect this increase on their websites and in all written materials; room prices and payment options are also published on the governments My Aged Care website. At our Clarification Meetings, the adviser can discuss current payment options and examples that apply to different personal financial circumstances. Every year thousands of people pay more than…

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Removal of Rental Income Exemption for Aged Care Entry

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As previously announced, from 1 January 2016 the exemption relating to rental income from a resident’s former principal home has been removed. Previously, if a care recipient in residential aged care pays for some of their accommodation costs by periodic payments, rental income from the former principal home was exempt in the Aged Care Means Test. For residents who enter care on or after 1 January 2016, rental income will be treated in the same way as any other income for the Aged Care Means Test and this exemption no longer applies. Note that residents in care before 1 January…

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Another level of Government Autocracy – Where’s this Leading?

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Beth Hourigan overviews a new registration system If Government funded service providers (those facilities that get a government subsidy for their approved residents) are directly approached by people seeking aged care services, both residential and in-home services, they are now required to refer new clients to the government’s My Aged Care website for registration. It appears that is an additional bureaucratic step for filtering access to services and funding for aged care clients. Although service providers are being encouraged to action these referrals to ensure clients can access services quickly, under the current mountain of paperwork I can’t see how…

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Aged Care Costs

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How much will it cost to enter an aged care home? Beth Hourigan, social commentator and Director, Aged Care Adviser Network and Financial Services, is frequently asked about the costs of residing in an aged care home.  Here she gives a basic overview of  what the costs are, how aged care fees work and who pays. The Australian Government pays for some of the services provided in aged care homes by way of subsidies for each resident, paid directly to the aged care home, but you’ll also contribute to the cost of your care. How much you do pay (in…

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Financial Planning for Retirement

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No matter how old they get, we never stop worrying about our kids, or our parents; but when most of us think of retirement and estate planning, we usually think of our own needs, or that of a spouse. And whilst many of us in our 60’s often talk to friends about how they’ve moved parents into residential aged care, when it happens to us (or our parents) it’s usually unexpected and unplanned.  So, it’s important that we all start to include aged care planning as an anticipated life-event just like we do with estate planning. Aged Care planning is…

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Retirement Financial Planner

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When engaging a financial planner for your “Golden Aged” planning, being retirement, estate and aged care planning there are some fundamental rules to follow;  Beth Hourigan, Director ACF Services, Financial and Investment Planning, shares some of her industry insights below. Experience and capability – Seek an established team with a track record providing all of life personalised aged care financial planning advice; ensure they have the highest standard of professional advice, and who adhere to comprehensive compliance, education and industry standards. Simplicity and Easiness – Be involved throughout the entire process, and be sure that your financial plan is easily understood,…

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Retirement Income Planning

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Retirement is a life-changing event, and as people adjust to this new lifestyle, they also need to think differently about their income and finances. In retirement priorities typically change from saving in preparation for leaving the workforce, to carefully spending those hard-earned savings.  It’s likely that the initial focus will be to find a way to replace wages with cash flow from other sources.  There is no single retirement solution that suits all situations; with more than one investment strategy and more than one product being required.   So it’s important to seek professional help from a properly qualified and experienced financial…

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Retirement Planning Strategies

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A lot of us ponder how much money we’ll need in retirement, and how long we’re likely to live; but very few of us speculate on what our aged care needs might be in terms of funding or lifestyle. Beth Hourigan, Aged Care specialist and social commentator, says she encounters people every day who are simultaneously dealing with their own retirement issues whilst looking after the aged care needs of elderly parents and relatives.   People are generally healthier and living longer than previous generations, with retired men achieving 86+ years and women 90+ years; so it’s quite likely that more...
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