The major changes to aged care announced last week by the Government reinforce one thing – if you want choice over where and how you live then be self-funded.
If the Government continues to fund around 85% of the care costs then expect them to dictate the terms. And expect those terms to be strict – a necessity of an ageing population.
Being self-funded will take thinking and acting ahead. For many Gen X’s and Ys improving life expectancy is such that they could spend as long in retirement as they did in the workforce.
Becoming self-funded therefore means diligently setting aside a good portion of wealth for that lengthy retirement.
The alternatives are not pretty: higher taxes, spartan retirement lifestyle and fighting for medical and care services.
The sooner you act the easier it will be. That’s the power of compound interest!