This is why professional financial advice is needed when a loved one moves into residential aged care

Moving a parent into residential aged care is never easy.

But for one daughter, the challenge went beyond the usual emotional toll.

Two months after moving her parents into an upmarket aged care facility, she found that the costs were simply unsustainable.

The family had assets – $195,000 from a retirement village exit entitlement and $200,000 in cash.

But with an upfront payment – known as a Refundable Accommodation Deposit (RAD) – at the aged care facility of $700,000, they soon found themselves financially stretched.

The problem with this approach

The daughter had taken advice solely from the admissions coordinator of the aged care facility. But had she sought independent financial advice, the story might’ve been very different.

One missed opportunity was the timing of her parents' entry into the facility, according to Shaun Ganguly of Aged Care Financial Planning. Had they entered on different days, one could have been classified as a “partially supported resident”, leading to significantly lower ongoing costs.

“We're talking about a difference measured in tens of thousands of dollars,” said Shaun (pictured below).


“Unfortunately, the decision is now irreversible without a complicated and unfeasible 30-day absence from the facility. The family is stuck in an untenable financial arrangement.”

The message is straightforward: when making a big life decision like this, consult a financial planner.


At Aged Care Financial Planning, Shuan said all aspects are carefully considered, potentially saving families from costly mistakes. A small upfront investment in specialised advice can prevent costly errors down the road.

[email protected] – 1300 000 243

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A special thanks to our contributors

Jill Donaldson


Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.