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Centric Wealth raises alarm on health costs

Aged care is an impending issue that financial advisers will need to respond to and assist with, according to wealth management firm Centric Wealth.

The current cost of aged care services, along with “complex carer and pension entitlements rules”, is creating a shortfall between health care needs and funds available to families, a Centric Wealth statement said.

“Over the past 100 years, life expectancy levels for 65 year-old men have increased from 11 to 21 years,” said Centric Wealth adviser Glen Stander.

“For women aged 65, life expectancy levels have increased from 10 to 22 years ... Because we are all living longer, the number of people receiving a full or part aged pension has increased to around 75 per cent of the population aged 65 and over. For those aged 80 and over, around 80 per cent are reliant on a full or part aged pension.

“That is why an increasing number of people are seeking professional advice as to how they can structure their finances to ensure they can fund the long-term care of their elderly relatives without negatively impacting their own finances or quality of life.”