Understanding aged care accommodation costs

For many people, the cost of a room in aged care seems an overly expensive outlay. But accommodation costs are largely misunderstood. This is not lost money, as the accommodation payment is refundable (if paid as a lump sum) and government guaranteed. And no-one is “forced” to sell their former home, but may choose to do so.

So why are the prices set at the levels they are? And how does it work?

Click on the link below for a simple explanation from Louise Biti in Your Life Choices Retirement Affordability Index publication - November 2021.