Residential Care

Read More

One of the biggest fears for retirees is the prospect of ending life in a rest home, and seeing the family fortune eaten up by fees. While at any given time only around 5-7% of people over the age of 65 are living in residential care, statistics show that just under 40% of older people die in care.

To be eligible for subsidised residential care an assessment is done to demonstrate that you have high needs and cannot be cared for at home. Next your income and assets will be assessed to determine eligibility for a subsidy. If you have a partner who is not in care, the asset limit is currently either $124,379 not including your house and car or $227,125 including your house and car.

If you are a single person or have a partner in care, combined assets must be less than $227,125 currently. If you are not eligible for a subsidy, you may need to fund your care by renting or selling your home, or taking out a reverse mortgage or Residential Care Loan. A Residential Care Loan is funded by the Ministry of Health and is paid back when you die or within 12 months of your home being sold, whichever happens first. Not everyone is eligible for one.

The maximum contribution you will need to make for your care is around $1,000 a week for basic care, although this varies by geographic area. The average length of stay is somewhere between 72 and 85 weeks.

It is possible to arrange your affairs in such as way as to provide a limited amount of protection of your assets, however this needs to be done carefully with professional advice. As the number of people requiring residential care increases, no doubt asset protection will become more difficult.

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.