Senior Australians are not planning or saving enough for aged care and they risk financial strain at the last stage of their life, new research suggests. A study by aged care and disability support group. Just Better Care has found that two-thirds of over-55s are not saving to cover climbing aged care expenses, and about 20 per cent incorrectly believe government funding covers most aged care costs.
More than 40 per cent never plan to save for aged care, and older Australians believe avoiding a nursing home by being cared for at home is more important than travelling, hobbies and leaving a legacy behind, Just Better Care’s 2025 Retirement Report says. “While a portion of Australians are taking proactive steps to prepare for aged care, the majority are yet to prioritise it in their retirement planning,” the report says. “With the costs of aged carerising and the likelihood of needing support increasing with age, these results point to a clear need for greater awareness and planning.”
Many people do not consider the costs of home modifications, inhome care and other health and medical expenses, says Care Connect CEO Lynda Chalmers.
“Government programs such as home care packages help, but they rarely cover everything,” Chalmers says.
“Many Australians pay for additional private support to bridge the gap. These costs vary widely but can add $5000 to $50,000 per year for services such as cleaning, meal preparation, transport, nursing and personal care. With the new Support at Home reforms introducing co-payments, even pensioners may face 5 per cent to 17.5 per cent of care costs out of pocket, while self-funded retirees may pay up to 80 per cent.”
Chalmers says many older Australians also face rising out-ofpocket expenses for specialists, scans and medications.