RECORD numbers of Australians are inquiring about aged-care services, with many people shocked by how much it can cost to get old and frail.

An overhaul of the aged-care system announced by the Federal Government last month is aimed at simplifying and streamlining the system but many of the planned changes, which include more in-home care packages and standardised pricing, are at least two years away.

The population is rapidly ageing, with the Australian Bureau of Statistics predicting the proportion of people over 65 will rise from 13.6 per cent in 2010 to 16.4 per cent by 2015.

The implications of this are already evident. Aged-care provider ACH Group reported a record 17,000 inquiries about aged-care services last year alone. ACH Group general manager innovation and development Jane Mussared says many of its callers are unaware that aged care extends beyond nursing-home facilities.

“Every day, thousands of older Australians receive in-home care to assist them with household duties such as gardening, home maintenance, transport and shopping, through to medication management and more complex nursing care,” she says.

These services are subsidised by the Government but costs can still vary greatly, with an hour of basic assistance a week less than $10 in some areas.

The Government says under its changes this price variation will be smoothed, while some part and non pensioners will pay more for in-home services.

Erika Wilke, founder of PrimeCare Financial Planning, which specialises in financial planning for residential aged-care services, says the cost of nursing home care is complex and understanding the expenses in deciding on a suitable facility can be overwhelming.

At present, costs can vary to the tune of millions of dollars depending on things such as the level of care required, location and whether it is a so-called “extra-service” facility.

Under government changes, a new financing authority will ensure residential care costs reflect the true cost of the service provided, fairer means testing for new aged-care residents will be introduced and annual and lifetime caps will apply to residents’ contributions to care expenses.

Wilke says details on the new fee structures are “scant” and the search for the right facility with a vacancy is traumatic for families when you have to weigh up fees, payment choices, the impact on Centrelink payments and investments.

“Every day I have someone on the phone shattered as they work through the financial maze, sorting through the fact from innuendo,” she says.

AMP financial planner Domenic Pepicelli says funding for aged-care services should be part of everyone’s retirement planning.

“Retirement planning is not just while you’re fit and healthy, but it’s life expectancy where you may not be fit and healthy and may need care,” he says.

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