Aged Care Financial Planning - How To Ensure You Stay Happy And Healthy In Retirement

Aged Care Financial Planning – How To Ensure You Stay Happy And Healthy In Retirement

By Paul Woods
In December 8, 2021
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Although none of us want to think about needing assistance when we’re older, aged care financial planning is an essential part of preparing for retirement. If you’re not prepared properly, things can get tough and no matter how old you are currently, it’s never too early to get a head start. That’s why today we’re looking at ways you can help ensure that you’re in a good position financially when you reach your golden years.

Speak To A Professional

The first step of any aged care financial planning journey should be to speak to a professional. There will be many aspects of the future that may not have even occurred to you. By engaging the services of a professional to help you work out what actually needs to be done, you can greatly improve your future situation. Retirement is a time that should be enjoyed but unfortunately, if you haven’t taken the time now to sort out your aged care financial planning things may not be so happy.

Contribute To Your Super

One of the simplest ways to boost the amount of money that you’ll have access to when you retire is to voluntarily contribute to your super. This is a key part of aged care financial planning as your super will be the bulk (if not all) of your income once your working years are behind you. Currently you also gain benefits from this as contributions to super are able to be taken from your pre-tax income meaning that you may end up owing the government less at the end of the year. You’ll also be able, in many cases, to use any contributions that you make out of pocket as tax deductions allowing for further benefit.

Hold Growth Assets

Aged care financial planning

The next part of your aged care financial planning should be to acquire and hold growth assets. These include stocks, housing and other assets that are expected to appreciate over time. Studies have shown that if your funds are invested in the stock market for over twenty years, you’re pretty much guaranteed to make a profit so getting your hands on “safe” stocks in your twenties and thirties should play a key role in your aged care financial planning.

Consider Prepayment

If it is your intention to go into a nursing home or assisted living community, you may want to consider prepayment as part of your aged care financial planning. This works best for those who already have an idea of where they want to go when they’re older but you could also consider opening a separate high interest savings account and making regular contributions to it throughout your working life.

Have A Budget

Finally, it is important to already have a budget in mind for when you stop working. In most cases, your accessible and incoming funds will drop significantly so creating a budget now is crucial to your aged care financial planning. Firstly you’ll want to look at all your current outlays and establish which will follow you into retirement, from there you’ll need to consider additional expenses that may pop up such as medication or assistance with living.

Preparing for retirement probably isn’t at the front of your mind right now if you’re still young but by getting on top of things early, you can save yourself a whole lot of stress in the future. Aged care financial planning is one of the best things you can do to ensure that you’re able to stay happy and healthy in your golden years and we hope that this article has been helpful to you in working out how to do just that.

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