Four out of five older Australians preferring to age at home and not go into aged care: survey

The majority of older Australians are suffering a crisis of confidence as they age and the possibility of moving into aged care looms.

Most older Australian were suffering from aged-care anxiety, according to a recent survey, with the vast majority preferring to age in their family home.

Older Australians are suffering from significant aged-care anxiety, with most preferring to stay in their family home, a new survey suggests.

The AMP-commissioned survey found four out of five Australians 65 and over don’t feel they are prepared for the transition into aged care, with half wanting to receive care at home, while seven in 10 worry about the cost of going into a facility.

More than half of the older Australians surveyed were “concerned” or “very concerned” about making the transition.

AMP director of retirement Ben Hillier said older Australians lacked confidence in the aged-care system and feel they don’t understand it.

“It’s a bewildering system to them and from our perspective they’re unduly worried about what the implications of it are,” he said.

“They are worried about whether they can afford care. They are worried about relocating and they prefer to be ageing in their own home. They are worried about how they’re going to fund aged care and then pass on their intergenerational wealth to their children.”

Elderly Australians worry more and more about the affordability of aged care.

The survey found three out of four older Australians expected aged care to diminish their health and their children’s inheritance, while nearly two out of five were worried about the financial burden on their children.

Half of the over-65s surveyed didn’t understand what government assistance will be available to them in their transition into aged care.

However, more than eight in 10 were confident their children would make the right decisions on their behalf about aged care, if needed.

The survey results follow the federal government’s introduction into parliament in September of the new Aged Care Act, aimed at supporting growing numbers of older Australians choosing to retain their independence and remain in their homes as they age.

By 2035, about 1.4 million Australians are expected to stay in their homes as they age while the number of Australians 85 and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 2058.

Mr Hillier said despite the retirees’ concerns, Australia has one of the highest-ranked retirement systems in the world.

“They are looking for greater certainty and more simplicity in the rules,” he said.

“Confidence will come with a better understanding about finances and more realistic expectations about what things will cost.

“Many Australians, in fact a majority of Australians. are worrying needlessly about the impact of aged care. We are quite asset-rich and we ought to be feeling more confident. We just need better education and better solutions available to confidently convert our wealth into retirement income that will support us as we grow older.”

AMP group executive, super and investments, Melinda Howes said the federal government’s aged-care reforms were an important step towards helping support the growing number of older Australians choosing to retain their independence.

She said the financial services industry needed to do more.

“It’s critical we continue to work with government and regulators to help take these aged-care financial worries off the table for retirees, and allow them, with their families, to focus on physical and emotional wellbeing during this often challenging phase of life,” she said.

“This begins with building financial confidence during the transition into retirement, giving older Australians greater choice and optionality when they reach this critical life stage.

“That means instilling a peace of mind that their savings and income will last, and understanding the available options for receiving care.

“This would not only provide comfort in the knowledge that they can remain financially independent as they age, but unlock a better quality of life in the early and active years of retirement.”

Originally published as Four out of five older Australians preferring to age at home and not go into aged care: survey