You may be receiving the Australian Age Pension, but does this affect the type and choice of aged care support you receive?

 

In Australia we’re fortunate to have the Age Pension as well as government funded aged care facilities to ensure everyone has access to support as they get older. Here are some of the questions we’re asked most about aged care and the pension.

 

Can I go into residential aged care while on the pension?

The simple answer is yes, this is absolutely possible. There are a number of high quality aged care facilities in Victoria and NSW that you can move into with the support of government funding, such as Aurrum Aged Care. These aged care homes are modern, well-staffed and offer a very high standard in clinical care, cuisine and lifestyle programs.

 

What do I pay in residential aged care?

In Australia you’re expected to pay for what you can in aged care, and the government subsidises the rest by paying this directly to your provider. Aged care payments include:

  • A basic daily fee, which is a standard amount
  • An income-tested fee which depends on your income and assets
  • Accommodation payment, which covers your room.

The amount of government subsidy paid will depend on your My Aged Care assessment – we’ll discuss this more in a moment.

 

What about my pension?

Many people keep receiving the same amount of pension after they move into residential aged care unless they have a significant change in circumstances. If you choose to, you can ask for your pension to be paid directly to your residential aged care provider. The provider can then take out fees and transfer the rest of your pension to yourself or your nominee.

 

What about selling my home?

We would recommend speaking with a Financial Information Service officer or your own financial advisor before making any big financial decisions, such as selling your home. This is partly because selling your home while on the pension can potentially affect your Age Pension assets test.

 

Where do I begin the move into residential aged care?

Before taking any action towards moving into government funded aged care facilities, it’s best to arrange an assessment through the government website My Aged Care, which can help to identify the best type of care, support and financial situation to suit your needs. If the right option is to choose government funded aged care facilities close to you, then we’d welcome you to arrange a visit to your closest Aurrum care home in NSW or Victoria.