A Super chance to talk aged care


Assyat David

Over the coming months financial advisers will meet with most of their clients to explain the changes to superannuation that take effect from 1 July 2017, to discuss the impact on each client individually and determine actions they need to take. We strongly recommend that advisers use this opportunity to broaden the conversation to include aged care.

While we acknowledge it’s a busy time for advisers, there’s no need to get into detailed aged care strategy. Instead, advisers should consider it an opportunity to determine whether their clients, or their clients’ parents, have current or impending aged care needs, and determine the urgency of these needs. This enables advisers to sow the seed that aged care strategy and advice is important, and provides a value-adding reason to follow up with applicable clients in the new financial year.

It’s no secret that Australia’s population is ageing or that life expectancy is increasing. The Australian government’s most recent intergenerational report[1] projects that by 2055 nearly two million Australians will be aged 85 and over, while there will be around 40,000 centenarians.

“The growth in these age cohorts demonstrates that aged care advice will become a major factor that shapes the delivery of financial advice in the future,” said Assyat David, Director, Aged Care Steps.

“It is increasingly important that financial advisers have the conversation with clients early, to ensure that the appropriate aged care strategy – be it for the client or their parents – is in place. Planning ahead gives the client, and their family, time to make the best decisions possible.”

Target clients for aged care services tends to be those aged 45-65 with living parents, rather than simply the ‘older’ clients. As well as preparing for their own retirement, people in this age group are often providing financial assistance to their children; the addition of aged care issues to the mix can be overwhelming.

“Being proactive in the delivery of aged care services to clients can add value to an adviser’s business and build deeper and more valuable relationships with clients; conversely, an adviser risks losing clients if they fail to provide for aged care needs,” said Ms David.

“Aged care advice is complex, but it can be extremely rewarding personally and professionally. Successful aged care advice hinges on good preparation, and a strong client value proposition with matching service offerings.” Ms David concluded: “The myth that advisers can’t make money from aged care advice is just that – a myth. The demand for aged care services will only grow. Advisers should take advantage of this opportunity and have the aged care conversation with clients now.”

[1] 2015 Intergenerational Report Australia in 2055

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