TL;DR
Get health and wellness essentials delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
A study of more than 920,000 Australians who applied for aged care between 2010 and 2019 found government social welfare payments made up 84% to 91% of income for most applicants. Researchers say ongoing monitoring is needed as the population ages and aged-care funding reforms change how some services are means-tested.
A study of more than 920,000 Australians who applied for aged care between 2010 and 2019 found that social welfare payments supplied 84% to 91% of income for most applicants, prompting researchers to call for continued monitoring of older people’s financial security as aged-care demand grows. The findings are relevant to current reforms, including the Support at Home Program, which applies means testing to some non-clinical services.
Researchers from Flinders University and the South Australian Health and Medical Research Institute examined the financial circumstances, income sources and homeownership of people entering aged care. Their analysis used data from the Registry of Senior Australians; participants had an average age of 82. The study was published in the journal Public Health Research & Practice.
Social welfare made up a smaller share of income for applicants in the highest income group, at 59%. The study also found that the proportion of applicants reporting non-government income rose from 12% in 2010 to 30% in 2019, although those amounts remained relatively small for most people. About 60% of applicants owned their homes, according to the report.
Lead author Stephanie Harrison said homeownership may not provide money that people can readily use to pay care costs. The researchers said their findings describe the financial circumstances of aged-care applicants during the study period; they do not establish whether any particular person could afford their care or predict future costs.
Income Security as Care Demand Grows
The findings matter because Australia’s aged-care system serves people with very different assets and incomes, while many applicants in this study relied heavily on public payments. The researchers say understanding those circumstances can help shape services that are accessible and equitable, including as more people need support.
The report says about 1.5 million people currently access government-subsidized aged-care services, including home-based and residential care. That figure describes people using services, not the number of future applicants. The study does not conclude that the welfare system cannot meet future needs; rather, it identifies a need for better evidence on whether older people’s income support remains adequate as the population and care needs change.
For households, the distinction between owning a home and having regular income may affect how care-related expenses can be met. Harrison cautioned that a valuable asset may not translate into funds available for immediate costs. The study’s results could inform policy discussions about how means-testing and income support interact, but it does not assess the effects of the new program.
Products Worth Considering
Levoit Vital 200S-P Smart Air Purifier for Large Rooms up to 1875 ft²
Fitbit Sense Health & Fitness Smartwatch (White/Gold, International Version)
Theragun Relief Massage Gun – 3 Speed, Black
As an affiliate, we earn on qualifying purchases.
What the Applicant Data Shows
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. The study’s authors note that superannuation was introduced in 1992, meaning many of the older people in their data had spent much of their working lives before compulsory contributions began. The results therefore reflect a generation whose access to superannuation differed from that of many younger workers.
The research covers people who applied for aged care from 2010 through 2019, not all older Australians. Its data provides a national view of applicants’ financial profiles, but those profiles should not be treated as a current snapshot of every person receiving care. The article reports that the share of applicants with some non-government income increased across the study period, while the amounts remained limited for most.
The report arrives amid ongoing aged-care reforms. The new Support at Home Program introduces means testing for non-clinical services delivered at home. The source describes the reform’s relevance to the study, but does not provide an evaluation of how the program is working or how it will change applicants’ costs.
“This study provides a foundation to support further research into how older people’s income, financial security and other circumstances impact when and how people use aged care.”
— Stephanie Harrison, lead author and associate professor at Flinders University and SAHMRI
What the Study Cannot Establish
The study describes applicants from 2010 to 2019; it does not show the current income mix of all older Australians or predict how much care future retirees will need. The source does not quantify whether welfare payments are sufficient to cover care costs, nor does it compare the affordability of different types of care.
It is also unclear from the report how the Support at Home Program’s means testing will affect costs or access for people with different incomes and assets. Although the study identifies homeownership and income patterns, it does not measure how readily applicants could use housing wealth to pay for services. Researchers say further monitoring is needed to track future retirees, including their superannuation and other income.
Monitoring Future Retiree Finances
The researchers call for ongoing measurement of older people’s income, financial security and access to care as the population ages. Their study offers a baseline for further work, but the source does not announce a specific follow-up study or timetable.
Policy developments to watch include how the Support at Home Program’s means testing is applied and whether later research finds changes in applicants’ income sources, care use or ability to meet costs. The available study does not say what those outcomes will be; it identifies them as areas requiring continued evidence.
Key Questions
What did the study find about aged-care applicants’ income?
For most applicants, social welfare payments represented 84% to 91% of income. In the highest income group, the share was 59%.
Who was included in the research?
The researchers examined financial and homeownership data for more than 920,000 people who applied for aged care in Australia between 2010 and 2019. Their average age was 82.
Does the report say Australia’s welfare system cannot meet future aged-care needs?
No. The study documents applicants’ income profiles and calls for ongoing monitoring. It does not conclude that the system will fail or establish whether future support will be sufficient.
Why does the study distinguish homeownership from income?
About 60% of applicants owned a home, but researchers said homeownership may not provide readily available money for care-related costs. The study does not assess how much housing wealth people could access.
How does the Support at Home Program relate to the findings?
The report says the findings are relevant to aged-care reforms because the program introduces means testing for non-clinical home services. It does not evaluate the program’s effects on costs or access.
Source: medicalxpress.com
