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  • Writer's pictureKris Jenkins

Why now is a good time to plan for frailty years

As we are heading to the halfway point of 2023 and are unsure what challenges the economy will continue to send our way, we hope the future starts to look brighter.

One thing we do know is that aged care reforms and funding issues will continue to be an important topic, making awareness and planning ahead increasingly more important. And we are here to help.

As the Baby Boomer generation starts moving into their frailty years, demand for aged care services will continue to grow, and funding will continue to be a challenge. This will likely raise discussions and lead to reforms around aged care funding, including the payment split between Government and consumer contributions.

A recent report on aged care funding by the Actuaries Institute shows that the Government currently funds 96% of care costs in the aged care sector, compared to 75% of broader health care costs. Over the next decade the government funding in aged care is expected to double (and exceed expenditure on the age pension) but even so, it is likely to be insufficient to meet the growth in demand and could lead to increases in consumer contributions.

In your frailty years, you should aim for quality of lifestyle as well as quality of care. Access to government subsidies will help to make care affordable, but good financial planning and access to your own financial resources will give you greater choice and control.

The start of a new year is always a good time to take stock of your financial plans and think about your expectations for your future. This should include questions about where and how you hope to age, what is important to you and what you can afford.

If you have concerns about your aged care needs, either imminent or future needs, or the needs of your older parents, we are here to help. We can help you understand how aged care works and review your retirement plans to ensure care needs are part of your planning process. And when the time comes, we can work the numbers to calculate the costs and provide advice on options to structure your finances to pay for the care you need.

Call our office on 07 56 667 223 to make an appointment today, or email us at

Reference: Aged Care Funding: Accessing the Options and Implications, Actuaries Institute, December 2021

Disclaimer: The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at 09/05/2023.


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