Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 239

Make an earlier start understanding aged care

Every day, approximately 32 people in Australia turn age 85 and this population sector has grown by 133% over the last two decades. An industry survey conducted jointly by Aged Care Steps and Swiss Re reveals that aged care is an increasingly important topic for advisers and clients and should be an earlier part of retirement planning. The survey was done in October 2017 with results compiled from 173 respondents.

Consumer implications

Australians need to plan for the affordability of future care needs and understanding the options to make informed decisions with confidence.

Chart 1 from the survey shows that Australians tend to seek aged care advice after a medical event or crisis, but often this is too late and their options are limited. They should deal with their aged care needs well in advance such as when planning for retirement.

Chart 1: When do people seek aged care advice?

Key issues include:

  • how to fund aged care costs given the shift towards a greater user-pays
  • willingness to access the equity in their home instead of a focus on inheritance
  • the ability to rely on family and friends to provide care and financial support.

The survey explored the challenges and fears of people concerning care, and show Australians are grappling with the following issues when accessing the right care.

Chart 2: The challenges and fears of people dealing with aged care

Professional advice implications

The aged care survey revealed that professional advisers should be preparing for aged care to become a standard business focus in response to increasing client demands. Advisers who ignore the demand for aged care advice risk becoming uncompetitive and less relevant to their clients.

Other results from the survey include:

  • 90% of surveyed advisers expect an increase in client demand for aged care over the next three years. About 85% of advisers report that clients are proactively seeking aged care advice with 29% suggesting this is happening frequently.

  • 30% of advisers provide aged care to service existing clients. The remaining provide aged care services to attract family or friends of care recipients (25% of respondents), build their client base and attract new clients (22% of respondents) and to provide intergenerational wealth transfer advice (21% of respondents).

These results align with the trend of advisers exploring new revenue sources and opportunities to better align with their client base, and about 51% of surveyed advisers regularly promote aged care services and a further 27% offer it on a case by case basis.

Advisers report that family members (children or relatives) and spouses approach them for aged care advice more than the person requiring care, as shown in Chart 3 below.  ‘Target clients’ therefore tend to be clients aged 40–70 years who take responsibility for dealing with their ageing parents. This age group often already represents the bulk of an adviser’s client base.

Chart 3: Who approaches financial advisers for aged care advice?

These survey results reinforce the risk that advisers who do not include aged care solutions to address broader needs, risk losing clients and forgo the opportunity to capture new revenue sources. Clients need to be made aware that they can approach their professional adviser when dealing with aged care issues for themselves or their loved ones.

Adviser groups need a compliance framework for the delivery of aged care advice, accreditation training, access to practical tools and efficient planning software. They need to review their portfolio construction guidelines for retirement planning to adequately address clients’ aged care needs throughout the retirement phase.

People should not wait until there is a medical crisis before considering their alternatives, and nor should they leave it to family members who might not know what’s in the best interest of the person requiring care. The desire to minimise family conflict is obvious.

 

Assyat David is a Director of Aged Care Steps.


 

Leave a Comment:

     

RELATED ARTICLES

10 ways to fix Australia’s broken retirement income system

Australia needs to transform how it cares for older people

Navigating downsizing

banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

Latest Updates

Shares

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Superannuation

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

Have Apple and Google reached the beginning of the end?

It might be hard to imagine a world where Apple and Google aren’t dominant, but disruption often starts with tiny cracks. AI's emergence into the mainstream might have set the stage for a new generation of leaders.

Superannuation

Did retirees lose out when they accepted defined benefit schemes?

Defined benefit pensions were designed to offer security in retirement. But new tax policies and arbitrary limits now erode their value - especially for Australians who contributed their own savings to these plans.

Property

Why Australia's agricultural land boom has stalled

Farmland prices have flatlined, bringing one of the most dramatic rural property cycles in Australian history to an end. The market for agricultural land now seems to be entering a new and more nuanced phase.

Property

The retail property niche offering income and growth

Neighbourhood shopping centres have fought off one perceived threat after another. What's more, they continue to offer secure income from blue-chip firms and other tenants linked mostly to essential spending.

ASX plans to attract more IPOs don’t go far enough

High-profile Australian stock market listings, like Guzman Y Gomez's IPO in 2024, are rare. ASIC aims to streamline the IPO process to boost listings, but faces barriers like share structures and governance.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.