Aged care costs dominate older Aussies’ concerns
With six in 10 Australians aged over 50 concerned about paying for aged care, new research has underscored financial advice as a way to mitigate these worries.
The 2024 National Seniors Social Survey conducted by Challenger and National Seniors Australia canvassed 4,700 Australians aged 50 and over.
It discovered that paying for aged care has become the top concern for older Australians, with 60 per cent of all respondents expressing worries about how they will cover these expenses. In comparison, this figure was at 38 per cent in 2021.
For those who have not received adequate financial advice, aged care cost calculations is the topic that the highest proportion of respondents wanted to know more about at 42 per cent.
This is followed by investment options at 34 per cent and balancing spending and saving, income options post-work, and level of savings to maintain desired lifestyle at 22 per cent respectively.
“We found that calculating aged care costs was the topic most people wanted financial advice about. Older Australians feel anxious about the prospect of needing aged care and the unknown costs associated with it. We must ensure seniors are not left to navigate these challenges alone, without adequate guidance or resources,” said Chris Grice, National Seniors Australia CEO.
The research also underscored the positive outcomes associated with seeking advice. Some 41 per cent of those surveyed have already received adequate advice and this group is more likely to feel financially comfortable, to be retired and own their home outright.
Commenting on the findings, Challenger’s head of retirement income research, Aaron Minney, said: “Australians need help to best use their savings to live life to the fullest, at every stage in retirement. We’re living longer and it’s essential for retirees to plan for 30 years or more in retirement.
“With the right guidance, we can ensure that people are financially prepared for aged care when they need it, and can enjoy an active retirement, knowing they are ready.”
However, Challenger and National Seniors Australia also observed that barriers preventing more Australians from seeking advice still exist.
Over 30 per cent cited the cost of advice as a key obstacle. This echoed previous research from Vanguard, which found that 51 per cent of 1,800 respondents highlighted the unaffordability of advice as a barrier.
Average ongoing fees charged per client currently stand at $5,500 per annum in 2024 – a 17 per cent jump from $4,700 last year, according to Investment Trends. In comparison, advice fees were at $3,450 in 2016.
AUTHOR
Jasmine Siljic
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