Aged Care: Beat the New Year Rush
Aged Care: Planning Ahead for the People Who Matter
Part 1: Beat the New Year Rush
Some of the most difficult conversations families face begin with a relatively simple question: Is Mum or Dad still managing safely at home?
It might be something small that first raises concern. Perhaps the house isn't being maintained quite as well as it used to be, a parent has become less confident driving, or the fridge contains food that should have been thrown away days earlier. On their own, these changes might not seem particularly significant, but when several begin appearing together, they can leave adult children wondering whether their parents need more support than they're currently receiving.
As we approach Christmas and another new year, I think this is a particularly important conversation for Australian families to consider.
The holiday season often brings families together for longer periods than usual. Adult children who live interstate or have busy working lives may spend several days with their parents rather than visiting briefly or speaking over the phone. It is during these extended visits that changes in someone's health, mobility, memory or confidence can become more apparent.
What may have seemed like an occasional difficulty earlier in the year can begin to look like something that needs attention.
The challenge is that recognising a problem and knowing what to do about it are two very different things.
Many families are understandably reluctant to raise the subject of aged care. Parents may worry that accepting help means losing their independence, while adult children may feel uncomfortable suggesting that someone who has managed their own life for decades now needs additional support. Nobody wants to make a parent feel incapable, and few people enjoy discussing the possibility of leaving a family home filled with memories.
Yet avoiding the conversation doesn't necessarily make the situation easier. In my experience as a financial adviser, some of the most valuable planning happens when people still have the time, confidence and capacity to consider their options rather than being forced to make decisions following an unexpected event.
Why Christmas can change the conversation
There is something about spending time together over Christmas that can bring changes in an ageing parent's circumstances into sharper focus.
During the year, family members may assume that everything is reasonably under control. Mum says she's managing, Dad insists he doesn't need any help, and everyone continues with their usual routines. But when the family comes together, small details can tell a different story.
A parent who once enjoyed preparing family meals may now find cooking exhausting. Someone who was previously active and independent may become hesitant about leaving the house. There may be unopened correspondence, missed appointments or increasing confusion around medications and daily responsibilities.
Sometimes the concern is less about a particular incident and more about a gradual change in confidence. A person who was once comfortable managing their own affairs may begin relying more heavily on a spouse, neighbour or adult child, often without acknowledging how much their circumstances have changed.
Of course, ageing does not automatically mean someone needs residential care. Many older Australians continue living independently for years with appropriate assistance, and occasional forgetfulness or reduced mobility should not be treated as proof that someone can no longer manage.
The important thing is to recognise when changes warrant a conversation, a medical review or an assessment of what additional support might be useful.
I also think families need to be careful about how they approach these discussions. There is a considerable difference between telling a parent that they can no longer cope and asking whether there are things they are finding more difficult than they used to.
One approach can make someone feel that their independence is being taken away. The other creates an opportunity to talk about how that independence might be maintained.
The difficulty of making decisions in a crisis
One of the reasons I encourage families to consider aged care arrangements early is that the circumstances surrounding a decision can have a significant influence on the choices available.
Imagine a family that has been quietly concerned about an elderly parent's wellbeing but has postponed taking any action. Everyone agrees that something may need to change eventually, although nobody is quite sure when that should happen.
Then an unexpected fall leads to a hospital admission.
Suddenly, conversations that could have taken place over several months need to happen within days or weeks. The family may need to understand what level of care is required, whether returning home is realistic, what services are available and how any ongoing arrangements will be funded.
There may also be differences of opinion between family members. One person believes Mum should return home with additional assistance, another thinks residential care would be safer, while Mum herself may be determined to return to the house she has lived in for forty years.
These situations are emotionally difficult even when everyone agrees. When important financial decisions are added to the discussion, the pressure can become considerably greater.
I don't think the answer is to rush into arranging care before it is needed. Rather, it is to understand the available pathways early enough that an unexpected event doesn't leave the family starting from the beginning.
Knowing how to request an aged care assessment, what support may be available at home and what residential care could involve can make a substantial difference when circumstances change.
Aged care doesn't always mean leaving home
One of the misunderstandings I encounter around aged care is the assumption that discussing it means preparing for an immediate move into a residential facility.
In reality, there are different levels of assistance available, and the appropriate arrangement depends on the person's needs, preferences and circumstances.
For some older Australians, practical help with cleaning, gardening, shopping or preparing meals may make it easier to remain at home. Others may need assistance with personal care, nursing services, transport or managing everyday activities. Respite care can also provide temporary support, particularly where a spouse or family member has taken on significant caring responsibilities.
Australia's Support at Home program, introduced in November 2025, provides access to a range of services designed to help eligible older people continue living independently. An aged care assessment can help determine what support may be appropriate.
Residential aged care may become necessary when someone's needs can no longer be safely or adequately managed at home, but that decision should be guided by the person's health, care requirements and wishes rather than an assumption that reaching a particular age means it is time to move.
For families who are unsure where to begin, My Aged Care is an important first point of contact. It provides information about government-funded services and the assessment process, including support at home, short-term care and residential aged care.
I would encourage families to become familiar with these options before they are urgently required, even if no immediate changes are planned.
The financial decisions families often underestimate
While the emotional and practical aspects of aged care understandably receive most of the attention, the financial implications can be equally significant.
This is where I believe early planning becomes particularly valuable.
When families begin exploring residential aged care, they may discover that the costs are more complicated than expected. Depending on the person's circumstances and the arrangements that apply, there can be accommodation costs, daily fees, contributions towards care and charges for optional services.
Accommodation may be paid through a refundable accommodation deposit, commonly known as a RAD, daily accommodation payments, or a combination of the two. The applicable arrangements and the resident's financial position can influence what they are required to pay.
Changes to Australia's aged care system that commenced on 1 November 2025 have also introduced different fee and accommodation arrangements for many new residents, making it especially important to understand which rules apply before making financial commitments.
For example, refundable accommodation deposits under the newer arrangements can be subject to retention deductions. Families should therefore avoid assuming that every dollar contributed as a refundable deposit will necessarily be returned when the resident leaves care.
Then there is the question of the family home.
For many older Australians, their home is their largest financial asset, but deciding whether to sell it, retain it or potentially rent it out is rarely straightforward.
The answer can depend on several factors, including whether a spouse remains living in the property, the person's other assets and income, the accommodation payment arrangements and the potential implications for the Age Pension and aged care fees.
Selling a property may provide funds to meet accommodation costs, but it can also change a person's financial position in ways that are not immediately obvious. Retaining the home may preserve future options, although it can create its own cash-flow and management challenges.
These are decisions that deserve proper consideration rather than being made simply because a family feels that selling the house is the obvious next step.
The financial arrangements should support the person's care and wellbeing while taking account of their longer-term needs. A decision that appears convenient today may have consequences for income, assets and financial flexibility over the years ahead.
This is one of the areas where appropriate financial advice can help families understand the implications of different options before committing to a particular course of action.
Having the conversation before everyone is under pressure
If you are planning to spend time with ageing parents over the coming Christmas holidays, I would encourage you to think about how you might begin a conversation about their changing needs.
It doesn't need to be a formal family meeting, and it certainly shouldn't feel like an intervention.
Sometimes the most useful starting point is simply asking how they're finding things at home, whether there are tasks they would appreciate help with, or what they would prefer to happen if they eventually needed more support.
Parents may have very clear views about remaining in their own home, accepting outside assistance or the type of residential care they would consider if their circumstances changed. Understanding those preferences while they can express them confidently is enormously valuable.
It can also be helpful to establish who would assist with practical arrangements if the need arose. Families should understand whether appropriate enduring powers of attorney and other legal arrangements are in place, and whether important financial information can be located if someone becomes unable to manage their own affairs.
These conversations can be uncomfortable, particularly in families where money, health and personal independence have traditionally been private matters. But approaching them with patience and respect can make them considerably more constructive.
I think the most important thing is to involve the older person in the decisions for as long as possible, rather than allowing concern for their wellbeing to unintentionally exclude them from discussions about their own future.
Why October is a good time to begin
We are still several weeks away from Christmas, which means families have an opportunity to gather information without the immediate pressure of the holiday period.
If concerns already exist, there may be time to arrange a medical appointment, contact My Aged Care, begin an assessment process or explore what local support services are available.
It is worth remembering that assessments, service availability and residential accommodation arrangements can take time, and the process will differ depending on the person's needs and circumstances. Beginning early does not guarantee immediate access to a particular service or facility, but it can give families more time to understand the process and respond thoughtfully.
From a financial perspective, it also creates an opportunity to consider potential care costs, review income and assets, and understand whether decisions about the family home may eventually be necessary.
None of this means that families need to make major decisions before Christmas. In fact, I would suggest the opposite. The advantage of beginning now is that you may be able to avoid making those decisions in a hurry later.
The objective is not to have every arrangement finalised by New Year. It is to enter the new year with a clearer understanding of what your parents want, what support may be appropriate and what financial questions need to be addressed.
Planning ahead is about preserving choice
When I think about aged care planning, I don't see it simply as preparing for a move into a facility or calculating how much that move might cost.
I see it as helping families preserve choices during a stage of life when circumstances can change unexpectedly.
For an older person, that may mean remaining at home for longer with appropriate support. For their adult children, it may mean having the confidence that they understand the available options and are not overlooking important financial consequences. For the family as a whole, it may mean fewer disagreements and less uncertainty when difficult decisions eventually need to be made.
There is no single arrangement that will suit every family, and even a carefully considered plan may need to change as health and personal circumstances evolve.
But having a plan, or at least understanding where to begin, is considerably better than waiting until an emergency makes the decisions for you.
As Christmas approaches, the most valuable gift we can sometimes give our ageing parents is the opportunity to talk openly about what matters to them and how they would like to be supported in the years ahead.
The best time to investigate aged care options is before you urgently need them. Not because every family should be making immediate arrangements, but because early planning allows more time for discussion, understanding and informed decisions.
If aged care is becoming a consideration for your family, particularly where decisions about accommodation costs, the family home or retirement income may be involved, I welcome you to contact me directly on LinkedIn for a confidential conversation about the financial considerations.
Next in our aged care series: Part 2, Where Do You Start When Mum or Dad Needs More Help?
General information only. This article does not take account of individual financial circumstances, objectives or needs. Aged care fees, eligibility and financial outcomes depend on personal circumstances and the applicable rules. Consider obtaining appropriate financial, legal and care advice before making significant decisions.