When property prices fall, it is tempting to put your downsizing plans on hold. But before you decide to wait, ask yourself three questions.
From October 1, personal care attracts zero co-contribution. Regardless of your means, you will not have to pay anything towards these services.
Downsizing can free up equity to invest or spend. But for retirees receiving the age pension that can be a problem.
There’s a risk with this that families often overlook: what happens if the property value falls?
If people are refusing nursing or allied health because they believe they cannot afford it, we have a communication problem as well as a care problem.
It’s tempting to look at the contribution rates and assume that paying 50 per cent or 80 per cent of a service must be cheaper than paying for it privately.
On top of all these you’ll still need to budget for personal expenses such as clothing, toiletries, hairdressing, medications and other day-to-day spending.
For Australians considering buying into a retirement village, it’s worth crunching the numbers – because the cheapest home isn’t always the most affordable.
The old idea that retirement villages are simply places for healthy retirees is changing. More residents want their village to be their “forever home”.
When a parent moves into residential aged care, it’s common for adult children to want to help out financially. But they should think twice.