Australia's financial services industry needs to support a greater government and retiree focus on the planning and funding for the country's aged care services, StrategySteps has said.
Data released by the Productivity Commission draft report 'Caring for older Australians' found 68 per cent of women aged 65 and 48 per cent of men aged 65 will need to access aged care services at sometime in their remaining life.
"No-one can afford to ignore the implications of funding aged care. Financial planners have been increasing their skills in this area over recent years and it should now be recognised and included as an integral part of the planning process," StrategySteps director Louise Biti said.
"An ageing population in Australia creates many challenges for us as a society and as individuals. Not insignificant among these challenges is the ability to access adequate levels of care as we age."
Biti said retirees can no longer afford to ignore planning for aged care nor can they ignore the impact on retirement finances with statistics showing care costs are a normal expense of growing old.
To account for the cost of aged care, she said the report identified a number of options for the government to consider, among them the choice to increase taxes.
"It is not surprising that the report made recommendations that would increase a person's requirement to pay for their own aged care with a safety net for those of limited means," Biti said.
"In particular, consideration is being given to how people can draw on their housing wealth to contribute more to the cost of their care. This could include options to sell the home or use equity release schemes.
"Other alternatives raised included greater savings or insurance to cover care costs. The means test assessment rules could also change."
A final report on 'Caring for Older Australians' is due at the end of June this year.
