Feel like a sandwich?

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No, I am not referring to a piping hot ham and tomato toastie with cheese oozing out the middle, but rather I am referring to your current lifestyle.

Recently I made an observation about the number of grandparents looking after young children in a local park, and how those of us approaching retirement today often find ourselves playing the role of ‘carer for the young and old’.

For those of us in our 50’s and 60’s, we have become the ‘sandwich generation’. We are caught between our children and their growing families, and in many cases, our own parents who are approaching their twilight years.

As we approach or enter retirement, many of us still have one or both parents alive. This is a product of an increasing life expectancy. According to the World Health Organization, Australia ranks 4th in the world for having the longest average life expectancy.

With the added pressure on young families to have two incomes simply to be able to afford to enjoy the lifestyle they desire, coupled with the spiralling costs of child care, today’s 50 and 60 years olds are also becoming the part-time or even full-time carers for their grandchildren.

So, where does this leave today’s ‘young’ retirees?

They find themselves providing increasing care for aged parents, whose needs for assistance will only increase with age and, at the same time they are spending time caring for their grandchildren, even if that is just picking them up and providing after-school care.

It’s fair to say that most grandparents love to spend time with their grandchildren – watching them grow and learning to master new skills. But, this can be exhausting, particularly as grandparents start to age themselves.

When coupled with caring for older parents, that can be even more demanding.

Perhaps, for those of us with older parents, some time spent finding out what services are available in the local community is a good starting point. Whether it is the need for help when cleaning the house, mowing the lawns, administering medication, or otherwise helping to manage daily living, exploring what is available, on a short-term or longer-term basis, is worthwhile.

We need to take time out for ourselves, while still acknowledging the need to provide support and assistance where we can.

Drawing on the support of other agencies and services when the need arises should never be seen as a weakness on our part. After all, and despite the perceptions of our families, we are still only human!

 

Source:  Peter Kelly | Centrepoint Alliance

Aged Care – Not all accommodation costs are the same!

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Aged care costs are extremely complicated and issues have been raised in relation to a person entering residential aged care and having to pay a Refundable Accommodation Deposit (RAD).

What is the RAD?

A lump sum payment made by residents for accommodation in an aged care home.

Do I have to pay the RAD?

Some people will have their accommodation costs paid in full or in part by the government, while others will need to pay the accommodation price agreed with the age care home. As to whether an individual is eligible for support from the government in meeting their accommodation costs, will depend on their assets and income.

What happens if I am not able to pay the RAD in full?

If you are required to pay the RAD and are not able to pay the full amount, you will need to pay a Daily Accommodation Payment (DAP). This amount is based on the interest payable on the balance of the RAD you have not paid. The current interest rate is 5.76%. To assist with a person’s cash flow to meet the required payment of the aged care fees, a request can be made to deduct the DAP from the RAD which has been paid.

What happens to the RAD when I pass away or move homes?

Indicated by its name ‘Refundable Accommodation Deposit’, the amount that has been paid will be returned to your estate or you if you move or leave the facility. This amount could be reduced if you have requested as per the previous question that a DAP can be deducted from the RAD. It should also be noted that the RAD is underwritten by the government, in other words it is guaranteed.

The RAD is the accommodation cost, which depending on your circumstances, you do have to pay. There are, however, a couple of additional charges that have recently appeared in accommodation contracts. The charges should be closely scrutinised before any agreement is made to pay them or have them deducted from the RAD which has been paid.

These fees can appear as a ‘capital refurbishment fee’ or an ‘asset replacement contribution’ with the explanation that they are levied to cover the cost of repairing, painting and refurbishment of a resident’s room when they leave or pass away.

The Department of Health is very clear that these fees would not be supported by the legislation.

The following is a direct quote from the Department of Health website dated the 2nd of September 2016 and refers to both these types of fees:

“Where the fee does not provide a direct benefit to the individual or the resident cannot take up or make use of the services or where the activities or services subject to the fee are of the normal operation of an aged care home and fall within the scope of specified care and services”.

Painting, repairing and refurbishment of a resident’s room would fall within the category of normal operation. These services should be factored into the facilities scheduled maintenance program. The resident is certainly not going to benefit from the refurbishment after they have passed away. I do not believe the charges for these services falls within the category of fees outlined in the Aged Care Act 1997, Quality of Care Principles 2014 and the User Rights Principles 2014 which are required to be paid by the resident.

So, if you believe you are paying a capital refurbishment fee or an asset replacement contribution or one of these fees is being deducted from the RAD that you have paid, I would certainly ask the question of the aged care facility as to whether the fee can be charged under the guidelines issued by the Department of Health.

 

Source:  Mark Teale | Centrepoint Alliance