What to ask your financial adviser about aged care — and how they can help

Entering aged care, whether for yourself or a loved one, can be one of life’s most emotional and financially complex transitions. The rules surrounding aged care fees, government subsidies, and asset assessments can feel overwhelming, especially when combined with decisions about selling the family home or protecting an inheritance. This is where a qualified financial adviser can make a world of difference — by providing clarity, structure, and confidence at every step.

The Top 5 Things to Ask Your Financial Adviser About Aged Care

1. How will my assets and income affect aged care costs? Aged care fees are determined by both your income and assets, so it’s vital to understand how Centrelink or the Department of Veterans’ Affairs will assess them. Ask your adviser to explain how your investments, superannuation, rental income, or the family home will be treated in the means test.
2. Should I sell or keep the family home? Selling the home can release funds to pay for accommodation and care fees, but it may also reduce eligibility for the Age Pension. On the other hand, keeping the home could preserve some pension entitlements but may require careful cash flow planning to cover ongoing costs. A financial adviser can model both scenarios.
3. What payment options are available for aged care fees? Costs can be paid through a lump sum refundable accommodation deposit (RAD), a daily accommodation payment (DAP), or a combination of both. Each option affects liquidity, estate outcomes, and government support differently.
4. How can we manage tax effectively through this transition? Entering aged care often involves asset sales, investment changes, or income restructuring. These can have tax implications that an adviser can help you plan around to minimise tax while maintaining financial flexibility.
5. How will this affect my estate planning and family arrangements? A move into aged care raises questions about inheritance, enduring powers of attorney, and asset division. Advisers can help align your aged care strategy with your estate plan to protect your wishes and family relationships.

The Top 3 Ways a Financial Adviser Can Help With Aged Care

1. Navigating the rules and reducing costs: Aged care fee structures combine daily care fees, means-tested fees, and accommodation costs that can be confusing. Advisers familiar with aged care can identify strategies to reduce expenses.
2. Creating a clear, sustainable cash flow plan: An adviser can map out how income sources — from pensions, superannuation, investments, or rent — will cover care fees and living expenses.
3. Supporting family decision-making: Planning for aged care isn’t just financial — advisers can help families balance emotional needs with practical financial decisions.

The aged care system in Australia is complex, but it doesn’t have to be overwhelming. By asking the right questions and working closely with a qualified financial adviser, you can make informed choices that protect both comfort and financial security. Whether it’s understanding the means test, deciding what to do with the family home, or creating a plan for the future, the right advice can make all the difference — giving you confidence that your loved ones are cared for, now and into the future.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)