Aged Care Costs: What to Expect and How to Prepare
Few pre-retirees want to think about aged care, but planning ahead can make the experience less stressful – financially and emotionally.
The Types of Care
- Home care: Government-subsidised packages help with cleaning, meals and nursing support.
- Residential aged care: For those who can no longer live independently, with accommodation, meals and medical care provided.
Costs to Expect
- Basic daily fee: 85% of the Age Pension.
- Means-tested care fee: Based on income and assets.
- Accommodation payments: Lump sum (Refundable Accommodation Deposit) or daily charge.
On average, home care packages cost around $12,500 annually, while residential care can exceed $60,000 a year.*
Preparing Early
- Learn how your home and super are assessed under means tests.
- Set aside a medical or aged care fund.
- Discuss wishes with family ahead of time.
Final Thought
Aged care is expensive, but planning helps protect both your finances and your family’s peace of mind.
References
- Services Australia. Aged Care Costs and Fees, 2025.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
