Aged care will require emotional skills
Financial advisers need to be sensitive to the emotional impact of providing aged care advice as well as being able to handle the financial and technical aspects of this growing advice sector.
Equity Trustees executive general manager Trustee & Wealth Services, Geoff Rimmer, said while advisers were well placed to work with older clients and their families they need to understand the scope and extent of the emotional impact involved with the advice.
Rimmer said the emotional demand will be high even among families who have planned ahead but advisers were best suited to provide unbiased advice across all aspects of aged care.
"For families who haven't made plans, it is almost certainly going to be even more confronting for the people concerned as they may not be able to get into the aged care facility of their choice, work out how they are going to pay for it or appreciate the many other issues involved," Rimmer said.
"It is too easy for families to allow their emotions to get the better of them and end up not making the best long-term decision about aged care. It is an area that can create irreparable rifts in a family, causing pain and distress for the elderly in their last few years of life.
"Advisers are ideally placed to help manage this and give impartial advice to make sure clients take all the various considerations into account and reach the best possible decision."
According to Rimmer aged care advice was similar in intention to other forms of advice and advisers needed to be aware of who their client was and how they can act in their best interests.
"Advisers may also find themselves in a position where the client's situation has deteriorated rapidly and they need advice yesterday, expecting their adviser to provide an immediate response.
"This means making sure they are always up-to-date with the legislative requirements so they are able to act quickly on behalf of clients, having a good knowledge of the availability of aged care places and what exactly is being offered or forming strategic alliances with specialists."
AUTHOR
Jason Spits
Recommended for you
Two commentators have shared why cultural alignment can be the biggest deal breaker when it comes to advice M&A and how to ensure a successful fit.
With an abundance of private market options coming to market, due diligence becomes increasingly important as advisers separate the wheat from the chaff, adviser Charlie Viola has said.
The Treasury has launched a consultation into how the $47 million special levy for the Compensation Scheme of Last Resort will be funded.
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
