Why licensed aged care advice matters more than ever

When an older person needs aged care, decisions are often made quickly.

Families may be stressed and worried, and the financial choices involved can have long-term consequences that are difficult, and sometimes impossible, to undo. 

Yet many Australians are navigating aged care with incomplete, confusing, or simply wrong information.



Decisions may look deceptively simple

Australia's aged care system is complex. Fees, contributions, pensions, the family home, estate planning and cashflow are all interconnected.

On the surface, it can feel like you're choosing between a few payment options or financial decisions. In reality, small decisions can affect: 

• How much you pay for care over time
• Whether you keep or sell the family home
• Pension entitlements
• The financial security of a spouse
• What's ultimately left as an inheritance for the family.

These are some of the biggest financial decisions many people will ever make, and they may be forced to make them during a crisis. Paying for help at this time is crucial.

Information isn't the same as advice

Many families rely on information from government agencies, aged care providers, placement services, or other well-meaning services. These people mean well. But information is not the same as advice. And not everyone has the expertise to help you.

Information tells you how the system works. Advice looks at your actual situation (your income, your home, your objectives) and helps you to decide what makes sense for you. Advice also looks beyond the immediate issues to consider your whole situation and how this may change over time.

The problem is that the line between the two can become blurred. Families may not realise when guidance has crossed into advice, or that the person providing it may not be licensed or accountable for the outcome.

The risk of unlicensed aged care advice

Unlicensed aged care advice may sound confident and reassuring, but it comes with real risks. Unlike licensed advisers, unregulated providers aren't required to:

• Act in your best interests
• Hold professional qualifications specific to financial advice
• Carry professional indemnity insurance
• Belong to an external complaints authority, or
• Be accountable for the advice they give.

If something goes wrong, the consequences can be serious and you may have nowhere to turn. We've worked with families who have:

• Sold the family home unnecessarily
• Paid higher aged care fees than required
• Missed out on Centrelink entitlements
• Locked themselves into poor long-term outcomes
• Had to untangle decisions made in a rush
• Created legal disputes within the family.

These mistakes are rarely obvious at the start and may only become clear months or years later.

What licensed aged care advisers do differently.

Licensed aged care advisers operate under an Australian Financial Services Licence. That matters because it brings important consumer protections with it.

A licensed adviser must:

• Act in your best interests
• Meet strict education and professional standards
• Hold insurance that protects you if something goes wrong
• Belong to an independent complaints scheme to help you resolve issues
• Be accountable for the advice they provide.

Importantly, licensed advisers are required to consider how aged care decisions interact with pensions, tax, estate planning, cash flow and future care needs.

It's the bigger picture that is so important.

Having an experienced adviser in your corner means you're not navigating the system alone.  Professional advice does cost money. But what you're paying for is someone who can steer you calmly through the complexities when you're overwhelmed and help you avoid expensive mistakes. 

Need help with aged care decisions?

If you're feeling overwhelmed, unsure, or worried about getting it wrong, you don't have to navigate aged care alone.

We offer licensed and specialist aged care advice, to help you make the right choices. If you'd like to talk through your situation or understand your next steps, contact us today to discuss your situation.

M Group Financial Planning Pty Ltd

Australian Financial Services Licence No: 340094

IMPORTANT DISCLAIMER: This article does not constitute advice. Clients should not act solely on the bases of the material contained in this document. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly and we therefore recommended that our formal advice be sought before acting in any of these areas. This article is issued as a helpful guide to clients and for their private information.