Reforms bring aged care advice into focus

There has been an increasing focus on advice around aged care and support services, with the announcement of the Federal Government's aged care reforms, according to Rachel Lane, founder and principal of consultancy Aged Care Gurus.

Lane said the industry had acknowledged the impact of aged care on finances and estate planning, adding in-depth understanding of this area of financial advice will be desirable.

"Many dealer groups, life companies and financial institutions are responding with training programs and support services that enable financial planners to make this their core service offer," she said.

The Government has estimated that around 3.5 million people will be using aged care services by 2050, but only 20 per cent will be receiving care in an aged care facility.

While that represents 500,000 more than current figures show, the other 2.8 million in need of care would probably use a combination of different legal and financial arrangements, Lane added.

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These could range from staying in their own home or moving in with children to receive companionship and assistance, she said.

"The formalisation of care contributions for people who receive a government funded care package together with the various legal and financial considerations will create a need for advice on a much wider scale," Lane added. "However, and most importantly, financial planners will need to have knowledge of the various legislations - Retirement Villages Acts, Manufactured Homes Parks and Caravan Parks legislation and the Aged Care Act," Lane said.