Financial considerations when moving into assisted living
Whether you are personally looking into your retirement and assisted living options, or helping out one of your family members with this transition, we breakdown some key financial considerations when moving into assisted living.
What are the upfront costs?
A retirement village or aged care facility will usually request an upfront payment to secure your accommodation. This may be by way of:
- Refundable Accommodation deposit (RAD);
- Daily Accommodation deposit (DAP);
- Possible combination of the two.
Are there any reoccurring fees?
On top of the upfront costs, there may be additional daily, weekly or monthly fees for upkeep of the property, amenities and care.
Will the government cover some costs?
The Aged Care Means Test is used to assess the eligibility for government funded assistance and financial hardship assistance.
How much support will be given by the government?
Your income and asset position at the time of assessment will determine your level of support and what additional payments, if any, may be made by the government to assist with accommodation and care.
What will happen to the upfront payment on leaving?
It is important to review your contract on entering the facility so that you understand what may be paid out upon leaving. This will depend on the facility, government assistance, and how you secured your position (RAD or DAP or both).
If you have any questions or should you need any assistance please do not hesitate to contact us at Southern Waters Legal.