IN Victoria recently a facility housing aged people went into administration causing financial loss to the residents.
Unfortunately, this has led to a lot of unnecessary worry from people in the normal kind of aged care facility.
There are many alternatives to residential aged care, and it is not uncommon for people seeking care, companionship and domestic support to enter into living arrangements that are not regarded as formal aged care.
For example, the inability to maintain the family home and the social isolation that can come from the death of a spouse or reduced mobility often leads to a decision to move to an over 55's community or retirement village. In Victoria and South Australia there are also State Governed facilities, known as Supported Residential Services (SRS's)that people can access on either a temporary or permanent basis.
It was one of these SRS's that went into Administration in Victoria with debts of $4 million. A number of families are reported to have paid large deposits to the operator, up to $400,000 in one case, of which they are unlikely to get any of it back.
Money paid to a retirement village, over 55's community or Supported Residential Service may look a lot like an Accommodation Bond paid to an aged care facility, but only Accommodation Bonds paid to Residential Aged Care Facilities (governed by the Aged Care Act) are guaranteed by the government.
Aged care is an increasingly complex area, this is why it is critical that you take advice before making any decisions about the type of accommodation that is most appropriate for you.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: email@example.com.
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