July 29, 2013

Vol 3 Ed 7

Vol 3 Ed 7

Volume 3 Edition 7 Newsletter

Online at http://www.financialcareservices.com.au/newsletters/vol-3-ed-7/

FINANCIAL CARE SERVICES
Independent aged care, lifestyle and financial advice for seniors
Volume 3 Edition 7 – 30 July 2013

Hello

Financial Care Services has a new easy access office

Financial Care Services has moved into a new office at street level.  The new building has no steps making access easy for our less agile clients.  The office faces Thomas Street which has unrestricted parking on the south side. 

Our telephone number and mailing address remain unchanged.  Call Christine at Financial Care Services, on 03 9808 0338 for appointments at 172 Warrigal Road, Camberwell.

How safe are Aged Care Accommodation Bonds?

New entrants to Commonwealth regulated aged care homes may be asked for substantial Accommodation Bonds.  Bonds of $400,000 are ‘normal’ in Melbourne’s eastern suburbs. 

The Accommodation Bonds for residential aged care are like interest free loans to the facility operator.  As the Accommodation Bond can be a major part of the aged person’s assets, families are concerned that the Accommodation Bond money will be repaid.

The Australian Government guarantees the repayment of Accommodation Bonds if the aged care facility operator becomes insolvent and is unable to refund their residents’ Accommodation Bonds. 

You can read more about the timing of Accommodation Bond repayments and understanding Accommodation Bonds and aged care daily fees at http://www.financialcareservices.com.au/christine-hopper-insights/accommodation-bonds-for-residential-aged-care/

Were you thinking of living on the Age Pension in retirement?

The amount of ‘income’ that you can have before the Income Test bites increased
on 1 July 2013 to $156 per fortnight for a Single at Centrelink DSP or Age pensioner,
or $276 per fortnight of combined ‘income’ for a Couple at Centrelink. 

The Asset Test Allowances also increased for all of the ‘personal circumstances’ at Centrelink.  For example, a Single Homeowner can now have assets of $196,750 in
addition to the home, before the Asset Test bites. 

Thus a Single homeowner with ‘things’ valued at $76,000 and financial assets
of $118,000, but no other income, could retain the full Age Pension . 

The full Single Rate of DSP or Age Pension is $733.70 per fortnight. 
DSP and Age Pensioners are also eligible for Supplements of $74.70 per fortnight
making a total payment from Centrelink of $808.40 per fortnight. 

In summary the maximum income that Centrelink could pay
a Single Age Pensioner is only $21,018 for 26 fortnights. 

Holders of the Centrelink Pensioner Concession Card are eligible
for ‘pensioner discounts’ on many utility bills and medical services.

How much Income and Assets can I have before the Income and Asset Tests exclude me from any DSP or Age Pension? 

To read more about the means testing for the DSP and Age Pension http://www.financialcareservices.com.au/christine-hopper-insights/centrelink-pension-allowance-increases-on-1-july-2013/

Am I now eligible for a part Age Pension?

Financial Care Services offers Short Consultations to help you estimate how much Pension you could expect to receive.  If you think that you might be eligible for a part Age Pension you can call Christine on 03 980-8 0338 to arrange a Short Consultation, 45 minutes in person or by telephone and/or email to discuss your position.

 ____________________________________________________

Financial Care Services

Christine Hopper
Director
Financial Care Services Pty Ltd
Independent aged care, lifestyle and financial advice for seniors in Melbourne, Victoria, Australia
Australian Financial Services Licence Number
299570 (check this at www.search.asic.gov.au/fsr/flb.html)
Authorised Representative Number
252529 (check this at www.search.asic.gov.au/fsr/far.html)

Telephone – call +61 3 9808 0338
Email – contact info@financialcareservices.com.au
Address – mail or meet at 172 Warrigal Road, Camberwell Victoria 3124
Website – visit www.financialcareservices.com.au
LinkedIn – connect www.linkedin.com/in/fincareservice
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Past newsletters – see http://www.financialcareservices.com.au/newsletters
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Disclaimer: The information contained in this newsletter is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations.

© 2013 Financial Care Services Pty Ltd. All rights reserved.