Whether downsizing your home, relocating to a new city, modifying your existing property, or entering an independent or assisted living arrangement is on the cards, thinking ahead could create more certainty.
When thinking about your retirement, financial and non-financial considerations will all play a part.
Below we explore some of the things you may want to think about, whether you’re deciding for yourself or helping a loved one weigh up the pros and cons.
For many Aussies, retirement may be an ideal time to downsize, possibly relocate somewhere new, or both, while freeing up a bit of extramoney. Either way, there will be a variety of things to consider.
Financial considerations when downsizing or relocating
Non-financial considerations when downsizing or relocating
If you’re not too sure about some of these things, that’s okay. However, if you are thinking about moving to an area that you’re not familiar with, it might be worth trialling where you’re thinking about moving to, by visiting the neighbourhood a few times, or even taking a short break and renting there for a while.
Rather than moving, you may be thinking about making modifications to your existing home to make it more accessible for what you might need in your future years.
For instance, you may be considering installing handrails and ramps, widening doorways, installing emergency alarms, monitoring systems or even adding sensor lights.
This could also delay the potential need to move into an assisted living facility down the track, and the good news is, if this is something you’d like to do, there may be government subsidies1 to help you cover the costs.
If you’re looking for more information on subsidies for modifying your home, you can either check out the government’s My Aged Care website or call 1800 200 422.
If you’re looking to downsize or reduce your responsibilities (your home might be getting too big to manage), you may be considering moving into a retirement village, which is a residential community designed for older people who are generally able to care for themselves.
Retirement villages have different living options and offer a range of leisure, social and support services, depending on whether you’re choosing an independent living centre or an assisted living arrangement.
Independent living centres typically have minimal assistance in day-to-day living but plenty of medical and recreational facilities, such as community halls, bowling greens, libraries and pools.
Assisted living centres generally offer more support with house responsibilities and maintenance, such as housekeeping, cleaning or preparing meals.
Payment models for retirement villages
There are many different payment models when it comes to retirement villages, depending on whether it’s an independent living or assisted living centre.
However, some typical costs you may come across include an entry contribution, an exit fee and ongoing charges to cover things like maintenance and general services provided by the village.
How different villages charge can vary significantly, and some residents may be subject to different payment models or special levies, which could also change over time. This is why it’s important to read the fine print and consider speaking to a legal professional before signing anything.
By considering your options in aged care earlier rather than later, you may be able to provide yourself, or a loved one, with greater flexibility and freedom down the track.
The other thing worth noting is that moving into an aged care facility might not be the only option, with the government providing various services that could help you to stay at home for longer.
Help at home
If you’re generally able to manage, but require assistance with daily tasks, like shopping, cooking, home maintenance, personal care, travel and social activities, there are various home-care services that could support you, so you may continue to live independently in your own home.
Short-term care services provide support for a set period of time. There are three types of short-term care available, including:
Aged care homes
An aged care facility (or nursing home) is typically where you live in a full-service residence and receive ongoing care and support while you live there.
These aren’t the same as retirement villages or other independent living centres, which provide facilities but not necessarily the same level of support and care that you may need later in life. If you think this is the best option for you or your loved one, it’s a good idea to research and visit several residences to find the right fit
Eligibility for different services
To be eligible for various government aged care services, you have to meet certain criteria and pass an assessment process. This can be organised through the government’s My Aged Care website or by calling 1800 200 422.
Also keep in mind that the costs of different aged care services vary and will depend on the care you’re eligible for, the provider you choose and your financial situation.
We can help you explore some of the things you may want to think about, whether you’re deciding for yourself or helping a loved one weigh up the options. Speak to us today on |PHONE|.
Source: AMP June 2021
This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, available by calling |PHONE|, before deciding what’s right for you.
All information in this article is subject to change without notice. Although the information is from sources considered reliable, AMP and our company do not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP and our company do not accept any liability for any resulting loss or damage of the reader or any other person. Any links have been provided for information purposes only and will take you to external websites. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.