Tell clients to expedite aged care, advisers warned
Clients considering aged care for their loved ones should be advised to speed up the process to avoid new means test rules set to kick in later this year, a life insurance specialist says.
With grandfathering delaying the former Government’s new legislation until the end of June this year, clients still have time to capitalise on the existing system, according to Austock Life’s head of distribution Richard Atkinson.
“Getting the wrong advice, could have the same negative outcome as waiting too long, namely thousands of dollars in additional costs and lost pension payments,” he said.
Under the new means test, the value of the family home up to $144,500 will be included in retirees’ assets.
As a result, it will become more common to retain - rather than sell - the family home, Atkinson added.
“It’s important that anyone contemplating entering aged care any time soon fully understand what impact new rules will have on both the cost of care and their age pension, plus any other financial implications,” he concluded.
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