While most financial advisers will explain changes to superannuation that take effect from 1 July with their clients, this should also be an opportunity for financial advisers to discuss aged care, according to Aged Care Steps.
Director, Assyat David said being proactive in providing aged care services to clients can add value to a planner proposition, while advisers could risk losing clients if they failed to provide for aged care requirements.
“They myth that advisers can’t make money from aged care advice is just that – a myth. The demand for aged care services will only grow,” David said.
“Successful aged care advice hinges on good preparation, and a strong client value proposition with matching service offerings.”
The clientele for aged care services would tend to be those aged 45 to 65 years with living parents rather than just older clients.
The Australian government’s intergenerational report projected that by 2055, nearly two million Australians would be aged 85 and over, while there would be around 40,000 centenarians.
“It is increasingly important that financial advisers have the conversation with clients early, to ensure that the appropriate aged care strategy – be it for the clients or their parents – is in place,” David said.
“The growth in these age cohorts demonstrates that aged care advice will become a major factor that shapes the delivery of financial advice in the future.”