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:



The reality of three phases of retirement

Three key retirement factors other than super

Aged care reforms: are the changes fair?


Most viewed in recent weeks

Unexpected results in our retirement income survey

Who knew? With some surprise results, the Government is on unexpected firm ground in asking people to draw on all their assets in retirement, although the comments show what feisty and informed readers we have.

Three all-time best tables for every adviser and investor

It's a remarkable statistic. In any year since 1875, if you had invested in the Australian stock index, turned away and come back eight years later, your average return would be 120% with no negative periods.

The looming excess of housing and why prices will fall

Never stand between Australian households and an uncapped government programme with $3 billion in ‘free money’ to build or renovate their homes. But excess supply is coming with an absence of net migration.

Five stocks that have worked well in our portfolios

Picking macro trends is difficult. What may seem logical and compelling one minute may completely change a few months later. There are better rewards from focussing on identifying the best companies at good prices.

10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?

Six COVID opportunist stocks prospering in adversity

Some high-quality companies have emerged even stronger since the onset of COVID and are well placed for outperformance. We call these the ‘COVID Opportunists’ as they are now dominating their specific sectors.

Latest Updates


10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?


Sean Fenton on marching to your own investment tune

Is it more difficult to find stocks to short in a rising market? What impact has central bank dominance had over stock selection? How do you combine income and growth in a portfolio? Where are the opportunities?


D’oh! DDO rules turn some funds into a punching bag

The Design and Distribution Obligations (DDO) come into effect in two weeks. They will change the way banks promote products, force some small funds to close to new members and push issues into the listed space.


Dividends, disruption and star performers in FY21 wrap

Company results in FY21 were generally good with some standout results from those thriving in tough conditions. We highlight the companies that delivered some of the best results and our future  expectations.

Fixed interest

Coles no longer happy with the status quo

It used to be Down, Down for prices but the new status quo is Down Down for emissions. Until now, the realm of ESG has been mainly fund managers as 'responsible investors', but companies are now pushing credentials.

Investment strategies

Seven factors driving growth in Managed Accounts

As Managed Accounts surge through $100 billion for the first time, the line between retail, wholesale and institutional capabilities and portfolios continues to blur. Lower costs help with best interest duties.


Reader Survey: home values in age pension asset test

Read our article on the family home in the age pension test, with the RBA Governor putting the onus on social security to address house prices and the OECD calling out wealthy pensioners. What is your view?



© 2021 Morningstar, Inc. All rights reserved.

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. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). 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.

Website Development by Master Publisher.