Retirement can be a time when you contemplate a number of changes, many of which might involve changing where you live. This could mean modifying your present home so it better meets your needs, moving from your current home (whether you own or are renting) into a similar home in a new environment, or moving to a retirement village. Later on, as more assistance with daily living becomes necessary, you might need to think about receiving more services in your home, moving in with family or friends or moving to a serviced unit in a retirement village. For those whose care needs have increased significantly, an Aged Care Assessment Team (ACAT) assessment can advise you on your care options.
Thinking about the future
Thinking about these things before they happen can assist in giving you the best opportunity to make choices for yourself. The information in this book will give you some ideas about whether particular arrangements might suit you, and about the financial side of making changes. It is best not to make a decision in a hurry, especially if someone with a vested financial interest is trying to pressure you into decisions about moving or upgrading your home.
It is also important to think about the long-term consequences of your choices. While it is not possible to know exactly what will happen in your later years, it is a good idea to bear in mind that your care needs may increase. So, for example, if you are thinking of moving to a retirement village and will be using the proceeds of your house sale, make sure you understand what you could expect to get back if your care needs increased and you wanted to move into a residential aged care home. More information on retirement villages is in the
'Moving into a retirement village' section.
If you are thinking about making modifications to your home, consider the possibility that you may be overcapitalising by spending more to make changes than you could get back if you sold your house. More information about this appears in the
'Keeping your family home and independence' section.
Giving away assets
It is also important to think about the implications of giving away any assets you own. For example, you may have significant funds left after selling your house and are thinking about giving money or other assets away to help your family or friends. Any gifts totalling more than $10,000 in one financial year or totalling $30,000 in a rolling five-year period can affect your pension for the next five years. Giving away your assets may also affect the assessment of your assets and your income-tested fees, if you are moving into residential aged care. This applies to pensioners and other residents alike.
The gifting rules are designed to discourage people from giving away their assets to receive more pension or subsidised care. For more information on the gifting rules and how they can affect your pension see in the
'How gifting can affect aged care costs' section. For information on how the gifting rules can affect your income-tested fees and the assessment of your assets if you move into a residential aged care home see in the in the
'How gifting can affect aged care costs' section.
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Thinking about your independence
Support from family and friends is likely to become more important to you when you retire. In choosing a new home or location, consider what level of independence you want. Your independence can be affected if:
- the new home you choose is more expensive than you can afford, leaving little for everyday expenses
- the home or garden is too big for you to manage, causing you to rely on outside help to maintain the home
- the home is too far from the shops, your doctor or other services
- the rules in, for example, retirement villages, caravan parks or strata title units, restrict what you can do.
Working out the costs
If you think moving to another house, whether in your own area or somewhere else, might be a good idea, your next step is to decide if you can afford to do it. To work this out, you need to have a reasonable idea of what your home will sell for and what it will cost to buy a home in an area where you want to live. You also need to take into account the costs of buying and selling, such as stamp duty, legal costs, payments to real estate agents and auctioneers, and removalist charges. It is also important to think about ongoing costs such as council rates (including water charges) and whether there would be body corporate fees (for example, if you moved into a villa unit or townhouse). At the same time you need to think about your present and future needs and any extra costs you might face, such as paying for care you might need in future.
It is best to get a realistic valuation of your home from someone experienced in real estate and who knows about house values in your area. Real estate agents may provide estimates. If you are seeking estimates from a real estate agent, you should get more than one opinion as estimates vary. To avoid any misunderstandings, make sure quotes are obligation-free.
You can also pay for an independent valuation of your home. To find a valuer who can provide this service in your area, see Valuers–Real Estate listed in the Yellow Pages.
Comparing your choices
Before you make a decision to sell or stay, it is a good idea to make a list of the things that are most important to you about your home. You could make a list of the things you most like and dislike about your present home and of the things that would be important to you if you moved elsewhere or decided to stay and make changes in your home. These could include characteristics of the house, for example whether or not there are steps and stairs, and of the location, such as whether it is close to services, especially doctors, transport and shops, and whether it is pedestrian-friendly. You might also want to think about the social, religious, community and sporting activities that are available in your own area and in the areas you might want to move to, and how easy it would be to maintain ties with family and friends.
Choosing the right type of home
You may have been used to living in a detached house on its own large block. This is the time to think about whether you might want to choose a different kind of housing—for instance a townhouse, courtyard home or villa, or a portable or relocatable home. Some of the things you might need to think about when considering a different type of home would include security of tenure (whether you will be able to live there as long as you want to), ease of maintenance, whether you can make alterations, access to a garden and whether there will be the right balance between privacy and company.
If you move into a portable or mobile home you may be able to get Rent Assistance from Centrelink, depending on whether you pay site fees and, if so, how much you pay. For more information on Rent Assistance see in the
'Rent Assistance' section.
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Moving to a different climate
You might be thinking of moving somewhere with different climatic conditions from your current home. Remember, the weather you would encounter in the extremes of summer or winter might be quite different from the weather at holiday times or as depicted in brochures. You might want to rent out your present house and test the climate and other aspects of living in the chosen area for a year or so. For information about the effect this could have on your pension see in the
'The income test' section. You also need to think about practical matters such as what would happen to your furniture and belongings.
Making a Choice
Having thought about all these issues, it is easier to decide what is really important to you in a new home or how you can change the things that are worrying you in your present home so you can stay put longer. It is wise to consider all options and take time to think about them. This means you can plan ahead rather than be forced to move because of a crisis or circumstances beyond your control. If there is an unexpected change in your circumstances, it will be easier to deal with if you have thought about the possibilities in advance.
What if things change?
At any age, health and family circumstances can change, meaning some decisions must be made quickly. Preparing yourself in advance means things could be very much easier for you and your family if things do change. For instance, having a power of attorney in place may make it easier for decisions to be made on your behalf by a trusted person if you have an accident or are taken ill.
If you feel your care needs are increasing and that you can no longer manage without outside assistance, you could talk to your doctor about whether an assessment by an ACAT is appropriate. The ACAT helps older people and their carers work out what kind of care will best meet their needs when they are no longer able to manage at home without assistance. The team provides information on suitable care options and can help arrange access or referral to appropriate residential or community care. Before you can receive certain types of care in the community or enter a residential aged care home you will need to be assessed and approved for care by an ACAT. In Victoria, ACATS are known as Aged Care Assessment Services (ACAS).
If your ACAT has recommended that you are in need of community care or residential aged care, either permanently or on a respite basis, you may wish to begin the process of finding an aged care service provider or aged care home. For more information on ACAT assessments see in the in the
'Eligibility for entry to aged care' section and for information on looking for an appropriate residential aged care home see in the
'Finding an aged care home' section.
If your ACAT has determined that you are in need of residential aged care, either permanently or on a respite basis, you may wish to begin the process of finding an aged care home. For more information on ACAT assessments see in the
'Eligibility for entry to aged care' section and for information on looking for an appropriate residential aged care home see
'Finding an aged care home' section.
Sometimes your care needs may change unexpectedly, for example as a result of an illness or accident. Respite care in an aged care home or in your family home may be an option in these circumstances. For more information on respite care see in the
'Respite care' section. If an ACAT has determined that you are in need of permanent residential care but you have not yet been offered a place, you may be also eligible for more community care services in your family home. For information on community care see in the
'Home and Community Care Services' section .
Couples separated by illness
Sometimes you and your partner may have to live separately because one or both of you become frail and ill. This is a time when people can feel very vulnerable. As well as concern about your partner's wellbeing and how you will cope living apart, there may be financial concerns.
Payment of a higher rate
As a member of a couple, if one or both of you become frail or ill and move away from your home, you may each be eligible for the single rate of pension. The single rate of pension is higher than the rate of pension paid to a member of a couple.
If this happens, your payment will still be based on your own and your partner's combined assessable income and assets but you will both be paid at the single pension rate. For more information about assessable income and assets see in the
'Assets test' section.
Depending on the circumstances, you may also qualify for Rent Assistance. For information on Rent Assistance see in the
'Rent Assistance' section.
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How to qualify for a higher rate
Basic qualifications
To get the higher single rate of pension, you or your partner (or both) must:
- be unable to live together in your home because of frailty or illness
- have higher costs for your day-to-day living because of this, and
- be likely to continue living apart indefinitely.
You may also be eligible to receive the higher single rate if you or your partner (or both) move into respite care for at least 14 days.
If you or your partner move into an aged care home or hospital care
Generally, you or your partner would be able to receive the higher single rate of pension if one or both of you move into:
- an aged care home
- hospital for a long period (as a nursing home type patient)
- a psychiatric hospital
- respite care for at least 14 days.
If one of you moves in with relatives because of ill health
If one member of a couple moves to live with children or other relatives because of illness or infirmity, both members of the couple may qualify for the single rate of pension. For more information about moving in with friends or relatives see in the
'Moving in with family or friends' section.
Do we have to live apart to get the higher rate?
Members of a couple who live together with their children or who live together in what might be considered a family unit do not normally qualify. However, you may receive the higher single rate of pension if you and your partner live in low or high level care in an aged care home.
What to tell Centrelink or the Department of Veterans' Affairs
You may qualify for a higher single rate of payment if you or your partner move away from home because of frailty or illness.
If you think you and your partner may qualify for a single rate you should tell Centrelink or the Department of Veterans' Affairs (DVA) as soon as possible. Centrelink and DVA can only pay you the higher amount from the time you tell them that you have moved.