4 out of 5 older Australians would prefer not to go into residential aged care: Survey

Older Australians are suffering from significant aged-care anxiety, with most preferring to stay in their family home, a new survey suggests.

The AMP-commissioned survey found four out of five Australians 65 and over don’t feel they are prepared for the transition into aged care, with half wanting to receive care at home, while seven in 10 worry about the cost of going into a facility.

More than half of the older Australians surveyed were “concerned” or “very concerned” about making the transition.

AMP director of retirement Ben Hillier said older Australians lacked confidence in the aged-care system and feel they don’t understand it.

“It’s a bewildering system to them and from our perspective they’re unduly worried about what the implications of it are,” he said.

“They are worried about whether they can afford care. They are worried about relocating and they prefer to be ageing in their own home. They are worried about how they’re going to fund aged care and then pass on their intergenerational wealth to their children.”

The survey found three out of four older Australians expected aged care to diminish their health and their children’s inheritance, while nearly two out of five were worried about the financial burden on their children.

Half of the over-65s surveyed didn’t understand what government assistance will be available to them in their transition into aged care.

However, more than eight in 10 were confident their children would make the right decisions on their behalf about aged care, if needed.

The survey results follow the federal government’s introduction into parliament in September of the new Aged Care Act, aimed at supporting growing numbers of older Australians choosing to retain their independence and remain in their homes as they age.

By 2035, about 1.4 million Australians are expected to stay in their homes as they age while the number of Australians 85 and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 2058.

AMP group executive, super and investments Melinda Howes said the federal government’s aged-care reforms were an important step towards helping support the growing number of older Australians choosing to retain their independence.

She said the financial services industry needed to do more.

“It’s critical we continue to work with government and regulators to help take these aged-care financial worries off the table for retirees, and allow them, with their families, to focus on physical and emotional wellbeing during this often challenging phase of life,” she said.

“This begins with building financial confidence during the transition into retirement, giving older Australians greater choice and optionality when they reach this critical life stage.

“That means instilling a peace of mind that their savings and income will last, and understanding the available options for receiving care.

“This would not only provide comfort in the knowledge that they can remain financially independent as they age, but unlock a better quality of life in the early and active years of retirement.”

Originally published by The Australian

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