Helping your parents plan for aged care

As our loved ones age, there comes a time when they may need to consider aged care options.  Helping them prepare for this financially and emotionally is something you may want to do.  In Australia and New Zealand, the decision to move an elderly parent to aged care can be a challenging one, filled with emotional and financial complexities. Here, we'll provide an overview of some of the steps adult children may want to take to help their parent/s prepare for aged care. 

Emotional preparation 

Having a parent who needs to move into aged care can be an emotionally taxing experience. Here are some steps you can take to help prepare yourself and them emotionally: 

1. Have open communication: if you know what your parent/s want, you can help them plan, in the event that they need to move into aged care.  Start the conversation with your parent/s early. Discuss their preferences, needs and concerns regarding aged care.  
2. Understanding emotions: it's important to acknowledge that both you and your parent/s may experience a range of emotions, from guilt and sadness to relief if or when you have to make aged care arrangements. Seek support from friends, family or counsellors to help you cope with these feelings. This is likely to be a big move, so there are likely to be big emotions associated with the change. 
3. Transition planning: encourage your parent/s to visit aged care facilities to get a feel for the environment. Involve them in the decision-making process to maintain their sense of control.  
4. Respecting autonomy: your parent/s will likely want to maintain as much independence and autonomy as possible. This may involve working with aged care providers who prioritise individualised care.
5. Legal and financial preparation: ensure that you have the necessary legal documentation in place, such as a power of attorney and advanced healthcare directive, to handle financial and medical decisions on your parent's behalf, if this is something they can’t do for themselves.   

Financial preparation 

The financial aspects of aged care can be daunting, but understanding the costs and available resources are crucial. Here's are some things you might want to consider or find out more about: 

1. Assessment: both Australia and New Zealand have a means-tested assessment process to determine your parent's eligibility for government-funded aged care services. This assessment will consider their income and assets and whether they qualify for free, government assisted placement.  In Australia, visit myagedcare and in New Zealand visit the government website for how to get an assessment. 
2. Fees and charges: there are lots of fees associated with aged care, such as the basic daily fee, accommodation payments or contributions and extra service fees.  The respective governments have set limits on some fees, so it's important to research these limits. What you pay for residential care will be dependant on the facility and services available.  In New Zealand, visit the health pages to find more information and in Australia, Services Australia provide more information on the residential care cap thresholds.  
3. Selling assets: if necessary, you may need to consider with your parents the sale of their assets, such as property or superannuation and investments, to fund their aged care requirements.  This can be a particularly emotional process for everyone involved.  Keep in mind that there are specific rules and thresholds regarding these assets. 
4. Financial advisers: consult with a financial adviser who specialises in aged care to navigate the complex financial landscape. They can provide tailored information based on your parent's specific situation. 

Finding more information 

Both Australia and New Zealand have dedicated government websites and resources to help you gather information about aged care: 

1.  For Australia, here are some resources that may assist you and your parent/s: 

   My aged care: this government website is the central hub for aged care information in Australia. It provides comprehensive information on assessment, fees and available services. 

   Department of Social Services offers a lot of detailed information for seniors on government support, pension eligibility and regulations related to aged care. 

   Council on the Ageing represent the interests of older people and have a lot of information available from government and community based organisations that may assist you.  

2. In New Zealand, these resources may offer some guidance:  

   Eldernet is a valuable resource for aged care information. It provides a directory of aged care facilities, retirement villages and home care services. 

   Age Concern New Zealand provides advice and support for older New Zealanders and their families, helping you navigate the aged care system. 

Conclusion 

Helping your parent/s prepare for aged care in Australia and New Zealand is a multifaceted process that requires careful emotional and financial planning. It's important to engage in open communication with your loved ones and explore the available resources and support in your respective location.  

Remember, while this article provides factual information, it’s important to seek advice from professionals when making important decisions related to aged care, including legal advice if Power of Attorney arrangements are required.  Ultimately, the goal is to ensure the well-being and happiness of your aging parent/s as they transition into this new phase of their lives.