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Aged care facility choices

Aged care made simple: what you need to know

Navigating aged care can be quite a challenge, especially with the new rules that come into effect on November 1, 2025. If you were already in the system before entering care, you might still be eligible for the old rules to continue.

It sounds complex because it is, but don’t worry, advisers can help you navigate the system. Before seeking any advice, here are some basic considerations you need to cover:

What are you trying to achieve through the aged care you are seeking?

  • Is the primary aim to give the person entering a facility their best future life?
  • Is it to preserve assets while also securing retirement options?
  • Or is it exploring all options and providing the family with the best financial outcome possible for all?

Whether it’s a retirement village, apartment or care facility, moving out of an independent living arrangement comes with a cost.

Retirement village costs

For a retirement village, which provides accommodation in property where people just need to meet the age requirements (ranging from over 55 to over 70), the costs include the cost of the unit plus maintenance costs. When leaving the unit, a percentage each year or up to around 30 per cent is retained by the management – essentially the cost of the lifestyle provided. This may include a pool, entertainment areas, cafes/restaurants and exercise facilities.

Aged care facility costs

For an aged care facility, it may be just part of their pension or a number of daily fees set by the government, the care provider and potentially more if means tested.

It’s important to realise that while aged care can seem expensive with accommodation fees plus additional fees (depending on Centrelink assessments), the money paid is providing a lifestyle – accommodation, food and care.

Refundable Accommodation Deposit (RAD)

For most people entering care, there is a refundable accommodation deposit (RAD) to be paid. This is the cost of the room and most of it is refunded on departure. The cost ranges from around $650,000 upwards. Many people may need to sell the family home to afford this but there are options for how it is paid. For example, you don’t need to pay it all upfront. There are ways to pay part of it and a higher daily cost or pay none of it and have an even higher daily cost. There are sound financial reasons why someone might want to delay these costs. In the new rules from November 1, a small percentage of RAD will be retained after the resident leaves the facility.

Seeking financial advice

A financial adviser can help with the complexity of aged care funding, helping people understand their financial obligations and how to manage their funds to ensure there’s income to support their needs and cashflow for the future. This may include selling the family home or keeping it and establishing funding from elsewhere.

There is an aged care speciality accreditation which many financial advisers now hold.

Source: Money and Life

Hardik Gupta

Senior Paraplanner

Education: Master of Business Administration (Finance & marketing) & Bachelor of technology (B.tech)

Hardik is a financial professional with an MBA in Finance and extensive expertise in financial planning. As a Senior Paraplanner, he brings a wealth of knowledge and a deep commitment to helping clients achieve their financial goals.

With significant experience in the financial industry, Hardik excels in creating detailed financial plans, performing comprehensive financial analyses, and supporting financial advisors with client portfolio management. His strong background in finance provides him with a robust understanding of market dynamics, investment strategies, and risk management, enabling him to deliver tailored solutions that align with each client’s unique needs.

In his free time, Hardik enjoys spending quality time with his family, biking, playing snooker, and exploring new culinary delights through cooking.

Mayank Manta

Team Leader

Master’s of Commerce & Bachelor of Commerce

Mayank has 8 years experience in the Financial Services industry, with extensive understanding and in-depth knowledge of Financial Planning.

Mayank enjoys systems and numbers, ensuring that every step that needs to be followed gets done and every step that is unnecessary be removed from the process. Being an open, honest and naturally empathetic person, Mayank goes out of his way to ensure that clients, family and friends are happy and content. In his free time, Mayank enjoys spending quality time with my family, creating lasting memories with the people who matter most to him.

Another activity he enjoys is travelling – exploring new places and experiencing different cultures is something that excites him.

Jack Wyer.

Financial Adviser

Bachelor of Business – Major, Financial Planning

Jack Wyer is a Financial Planning Graduate who has recently commenced his Professional Year with Verity Wealth Solutions. With a Bachelor’s Degree in Business, Majoring in Financial Planning, Jack has demonstrated high achievement, receiving merit awards in both 2021 and 2022. Jack’s passion for helping others and his desire to see others succeed financially have been the driving forces behind his chosen career pathway.

Driven by his passion for financial well-being and his innate ability to connect with others, Jack is dedicated on making an impact on the lives of others. Through his expertise, empathy, and commitment, he strives to empower people to achieve their financial goals.

Alongside his financial planning endeavours, Jack finds joy in spending quality time with friends and family and wants to slowly visit new countries along the way. Jack is also an avid Soccer player, actively playing for a local team. When it comes to supporting a team, Jack goes for Tottenham in the English Premier League.

Jack Wyer’s Adviser Profile