FINP064 Don’t lose your home! Alternative ways to pay for aged care (420 words)

It’s often presumed that the only way to fund residential aged care is to sell your home. This article explains why this isn’t always the case and discusses alternative options available including Daily Accommodation Payments (DAP) and Refundable Accommodation Deposits (RAD). It concludes with a recommendation to readers to reach out to their financial specialist to explore their options.

Anyone who has helped an elderly relative make the move into aged care knows that it can be a traumatic experience. It involves a move from the familiar – a home that a loved one may have lived in for decades – to the unfamiliar, a care facility with many residents and staff. On top of that, there are substantial fees to be paid.

The biggest fee, the accommodation payment, usually exceeds $300,000 when paid as a lump sum. Not surprisingly, when that sort of cash is not available, many people believe the only way to pay this fee is to sell the family home. That prospect can add further stress to the situation.