When moving a loved one into aged care or moving into a retirement village one of the biggest challenges is calculating the financial aspect which includes if you will be able to afford it including do I have to sell the family home, will it affect the pension, can I maximise the pension, and what are the options available to me for my individual situation.

Balance have been operating since 1999 and have helped over 30,000 people move into aged care and retirement villages. Some clients have needed financial planning, but majority only needed aged care/retirement planning. So, what is the difference between the two?

• The first obvious difference is the price; financial planning can range between $3,500 up to $10,000 depending on the complexity of the plan whereas aged care/retirement planning is about a 1/4 of the price of a financial plan.
• Financial planning is primarily about investing money, insurances, superannuation, and tax strategies.
• Aged care/Retirement planning use their expertise to create financial models to help the potential resident determine the financial options available and which option would best suit their client’s financial situation.
• A financial plan is often 200 pages in length.
• An aged care/retirement plan is on average 25 pages in length with precise, relevant, and concise information.
• A financial plan can take days and sometimes weeks to complete the final report. Whereas an aged care/retirement plan can have models created on the day and a physical or digital personalized plan sent to you within 48-hours.

When moving into aged care or a retirement village how many people need insurance, tax strategies or investment help? We have found over the years that less than 3% of our clients actually needed a financial plan, and of those clients that need a financial plan we have been able to refer them to our financial planning business (Balance Financial Solutions). The majority of our clients needed help navigating Centrelink rules and regulations and needed help understanding what options are available, then which of those options gives them the best financial outcome, including if they sold, rented or kept the family home or investment properties, and this provides a clear picture of the best way for the financial situation to fund the initial and ongoing costs in aged care or retirement village.

So, if you are paying 5 times more for a financial plan it must be better, right? Not necessarily. Aged care/retirement planning can provide the client with the same financial models, create a plan, and help with any Centrelink issues that you may have. Aged care/retirement planners are also able to provide assistance in finding aged care facilities or retirement villages that would be suitable for the client’s individual financial situation. So, if you aren’t looking to invest funds, find tax strategies, or take out an insurance plan, maybe an aged care/retirement planner could be the perfect option for you. You can also use this aged care/retirement plan to take to your accountant, or financial planner so they are able to have a greater understanding of your finances once you move into aged care or a retirement village.

Learn more about Balance Financial Solutions Financial Planning or Aged Care/ Retirement Planning.