Challenger estimates that less than 10% of financial advisers regularly provide aged care advice, despite a rapid increase in the number of Australians living beyond 85 that’s driving demand for aged care.
“In 2016-17, over 1.3 million people received some form of aged care. Clearly, there’s an opportunity and a need for more advisers with the capability to advise on the financial aspects of aged care. Our campaign aims to support advisers in having aged care conversations with their clients,” said Richard Howes, Challenger’s Chief Executive, Distribution, Product and Marketing.
Challenger’s campaign comprises a roadshow, with 19 workshops across New South Wales, Queensland, South Australia, Victoria and Western Australia; a series of webinars; and, tools and resources that include an aged care guide, an updated aged care calculator and new videos and articles on aged care. This is supported by an advertising campaign aimed at increasing adviser awareness.
“The time when Mum or Dad need aged care, whether in residential aged care or their own home, is highly stressful for many families. Good financial advice makes a difference. Clients often seek advice late in the process, at the point where an elderly relative is entering aged care, so there’s a role for advisers to play in helping clients plan ahead to reduce the urgency of the situation and achieve better outcomes,” said Mr Howes.
By 2027, there are projected to be 672,000 Australians aged 85 and over, an increase of 35% from 2017. The number of people aged 65 and over is also expected to increase, from 3.8 million in 2017 to 5.2 million by 2027.
The increase in dementia cases is adding to growing demand for aged care. By 2017 there were an estimated 365,000 Australians with dementia, nearly half of whom were over 85 years old. Half of all residential aged care residents with an Aged Care assessment had a diagnosis of dementia.
Reflecting the growing need for aged care services, Challenger is seeing increased demand for its CarePlus aged care annuity.
Challenger Limited (Challenger) is an investment management firm managing $81* billion in assets. It is focused on providing customers with financial security for retirement.
Challenger operates two core investment businesses, a fiduciary Funds Management pision and an APRA-regulated Life pision. Challenger Life Company Limited (Challenger Life) is Australia's largest provider of annuities.
*30 June 2018
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