When it comes to aged care there are a lot of expenses to pay – including the accommodation bond or charge, daily care fees, and possibly income tested fees depending on your circumstances. But how will you fund these expenses, and ensure you still have enough money to last you through life?

A financial adviser can help you prepare and invest for your future care needs. And once the day has arrived they can help you decide how to fund aged care costs, and invest any assets to maximise your income through life.

Accommodation Bonds

An accommodation bond is a lump sum paid by all people entering a hostel or an extra service nursing home. It is effectively an interest-free loan to the facility to fund construction, renovations and other services provided to residents. The bond is Commonwealth Government guaranteed and is returned, less the retention amount, within 14 days of the resident leaving the facility or grant of probate.

Bonds vary from facility to facility. The minimum amount of assets a person must be left with when calculating an accommodation bond is $36,000.

An accommodation bond is exempt from both the income and assets tests so the amount paid can have a huge impact on your Centrelink benefits. Talk to a financial adviser to help you negotiate the right bond to put you in the best financial position.