The licensee of the future will be expected to take on a greater role in supporting advisers to deliver aged care, especially as more of the cost burden shifts from the government to the consumer, experts say.
About half (51 per cent) of advisers regularly discuss aged-care options with their clients, shows a survey of 173 advisers conducted by Aged Care Steps and Swiss Re; however, that proportion is expected to increase with an ageing population, growing complexities around requirements and continuing reforms.
Advisers say aged care is an important part of their business model, with more than half (55 per cent) in the survey noting an increase in demand from clients. But almost 85 per cent of advisers say there is still a limited awareness around the issues and planning required. Almost 1-in-three advisers also say their business model is not optimised for providing aged-care advice, which makes it expensive to deliver to clients.
Aged Care Steps director Assyat David says advisers are increasingly seeking more educational resources and general support from licensees to incorporate aged care into their advice delivery. The survey reflected that demand.
Progressive licensees are starting to take that on, David adds. She says when Aged Care Steps was established, its main inquiries came via individual advisers, but that has now shifted. Licensees and super funds are taking on more responsibility for training and tools.
“[Licensees] need to review the policies they have in place…around minimum training levels and support services,” she says. Meanwhile, industry super funds are developing a range of aged-care services in recognition that they had to offer their members the options.
“If they don’t, they risk losing clients, because if they have the need [for aged-care services], they go elsewhere and take their superannuation with them.”
Funding changes ahead
While the government partly subsidises residential care, Aged Care Steps director Louise Biti says pressure is mounting to move to more of a user-pays model.
“Every single person in residential care gets some government subsidy currently, it’s just [a matter of] how much,” Biti says.
The cost of looking after someone in care is about $105,000 a person, government estimates state, but the most a person has to contribute independently is about $45,000, she explains.
Biti says, however, that this is constantly under review, with the expectation that households will take on more of a role in funding their own aged care.
In most cases, aged care is considered only after a medical incident, such as a stroke or dementia, Biti says, referencing the survey results. But she says advisers can help clients plan ahead instead.
