Aged care and superannuation - what are your choices?
2026 | 5min read
Aged care and superannuation - what are your choices?
Thinking about aged care - whether for yourself, a parent, or a loved one - can feel like a big step. But knowing your options can make things clearer and easier to plan for
In this article we discuss the following:
- In-home care
- Temporary care
- Residential care
- Retirement villages
Who pays for aged care?
Fortunately, the Australian Government subsidises many aged care services for eligible older Australians. But you’ll likely need to use your super, savings or other income to chip in too. How much will depend on:
- Your finances
- The type of care you choose
- Where the care is provided.
You may be asked to pay a combination of fees or contributions, depending on your circumstances. These arrangements are currently evolving as part of broader aged care reforms, so the way contributions are calculated may change over time.
To access government-funded aged care, you’ll need to register with and be assessed through My Aged Care, which is the starting point for all services.
Aged care is changing
Australia’s aged care system is currently undergoing significant reforms, including the introduction of a new Aged Care Act and updates to how care is assessed, delivered and funded.
A key change is the move to a single national assessment system, where one assessment process helps determine the level and type of care you may be eligible for.
There are also changes to in-home care programs, with a new Support at Home program expected to replace existing arrangements over time.
While the basics of aged care remain the same, these updates are designed to make the system simpler and more consistent for older Australians and their families.
In-home care
If staying in your own home as long as possible sounds good, you’re not alone - most people feel the same. Luckily, there’s help available, whether that’s from family and friends or through government-supported private, community and charitable services.
If you’re largely independent
If you’re mostly independent but need some help with day-to-day living, entry-level support may be available through government-funded services.
This can include assistance with things like:
- Cleaning, laundry and home maintenance
- Help with meals or meal delivery
- Personal care such as bathing and dressing
- Transport or social support
- Basic health services like nursing or physiotherapy
Availability, eligibility and program structure may change over time as reforms are introduced.
If you have more complex needs
If you need more regular or coordinated support, you may be eligible for higher-level in-home care.
Currently this support is provided through structured programs, which are transitioning to a new Support at Home model. Under these arrangements:
- Care is tailored to your individual needs
- Services may include personal care, clinical care and support at home
- Funding levels and care categories may vary depending on your circumstances
As part of ongoing reforms, the way in-home care is structured — including funding levels and contributions — is being updated to better reflect different types of care and support.
How to access in-home care
To get started:
- Register with My Aged Care
- Request an assessment
A care professional will assess your needs and recommend suitable services. This single assessment process helps determine both your eligibility and the level of support you may receive.
Temporary care
Sometimes you only need short-term care - like after an illness or when a regular carer takes a well-deserved break. That’s where respite care comes in.
Respite care can be provided at home or in a residential aged care facility. Government subsidies may be available depending on your eligibility and you may still need to contribute to the cost. An assessment through My Aged Care is required to access respite care.
Residential aged care
When living at home isn’t an option anymore and you simply need more care, residential aged care can provide the support you need. It’s a big step, but these facilities are designed to help you live as comfortably as possible. Most aged care services are regulated by the government and must comply with required standards. Staff must be appropriately trained, and a minimum range of services must be provided to all residents.
What’s included?
| What's included? | Residential aged care typically provides:
|
|---|---|
What does it cost? |
The cost of residential aged care depends on your financial situation and can include:
Fee structures are being updated as part of aged care reforms, particularly for new entrants to the system |
Retirement villages
If you’re over 55 and looking for a lifestyle change, a retirement village might be just the thing. These communities are great for people who want to live independently but like the idea of extra security and companionship.
Villages vary a lot, from cosy setups to large complexes with tennis courts, pools, and restaurants. Accommodation options range from units and villas to houses, and some even offer assisted living services for an extra fee. Residents generally don’t own their dwelling, but in most cases, pay for the right to live in the village through a lease or licence arrangement.
Unlike other aged care options, retirement villages aren’t government-subsidised, so you’ll generally need to budget for:
- An entry contribution
- Ongoing service fees
- Exit fees.
The amounts can vary greatly so it’s worth having a lawyer review the contracts carefully before you commit. The good news? You can still access subsidised home care services if you need them.
When it comes to aged care, understanding your options and planning ahead is key. It’s not a one-size-fits-all decision—what’s right for someone else might not be right for you. So if you’re getting ready to retire, you don’t have to go it alone.
If you’re navigating these important decisions and next steps, an Aware Super financial adviser can provide you with tailored, specialist help on Aged Care. Book a free initial appointment today.
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