Why Smarter People Think Ahead With Aged Care Financial Planning
People aged over 65 are the fastest growing population in Australia. The retirement industry is currently worth AUD$14 billion, and this number is expected to increase by 30% in the next 10 years. However, with an ageing population comes more aged care financial planning requirements. From matters relating to finding the right place to live, all the way to the intricacies that come with the various payments that potentially need to be made periodically or as a lump sum. It can quickly become a more confusing notion that previously thought.
It can be tough to figure out what you need when it comes to aged care financial planning – there are so many different strategies that might work for your situation or not at all. In this article, we’ll cover some of the fundamental steps involved in effective aged care financial planning.
What Is Typically Involved
People are often told that aged care financial planning is important and necessary, yet there is still a lot of confusion in the general public as to what exactly is involved. Simply put, aged care financial planning is the process by which you figure out how to accumulate enough money for retirement and subsequent years.
The most important thing to remember here, however, is that retirement will be expensive and it’s almost always best if you’re able to look ahead in some way or another – this means getting your aged care financial planning necessities sorted before something bad happens (e.g., age-related health issues arise).
It’s akin to a roadmap, a blueprint for the later years of your life where there shouldn’t be anymore large decisions that need to be made.
The 3 Types Of Aged Care Financial Planning
There are three primary types of aged care financial planning: lump sum purchasing/purchasing annuities; self-managed superannuation funds (SMSFs); and comprehensive income streams (CIS) with no capital guarantees. All three have their own merits but all can become complex very quickly – more than what many people might expect.
When aged care financial planning becomes complex it’s often best to enlist the help of a professional. It can be difficult and daunting for people who are used to doing everything themselves, but aged care financial planning is not something that should ever be attempted without expert advice.
As there are so many intricacies and eccentricities hidden in the smaller print, as well as the notion that every person is in a unique and particular state of monetary affairs, the best course of action should always be to have the assistance of people who know what they are doing.
A Few Tips On Choosing Wisely
If you’ve decided to be logical about it all and opting to hire a professional to help you with your aged care financial planning, there are a few things to consider and have in the back of your mind in your search.
> Make sure they are experienced in the field.
> Ensure that their fee is reasonable and not prohibitive to your budget constraints.
> They should be licensed by the relevant authority, such as ASIC or FPA.
If you go with an expert who has these qualities, it’s much more likely that you will get a positive return on investment for this particular aspect of life planning after retirement age. The last thing anyone needs at any point in life is added stress from matters relating to monetary management when there are already enough things weighing down on them.
If you follow the above steps, and prepare accordingly, you could end up having a much easier time in your twilight years, and relax knowing that everything is going to be alright.