Aged care planning for couples - what happens when only one partner needs care
When people think about aged care planning for couples, they often assume both partners will move through the system at the same time. In reality, this is rarely the case. More commonly, one partner requires care while the other continues living independently.
This creates a different financial and emotional situation, one that requires careful planning under Australia’s aged care system.
Outcomes can vary significantly depending on how assets are structured before care is required, which is why early planning is critical.
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Quick summary – aged care planning for couples
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What actually changes when only one partner enters aged care
When one partner moves into residential aged care, the couple is no longer assessed in the same way as before.
Aged care fees and means testing in Australia are governed under the Aged Care Act 1997 and assessed in line with rules set by Services Australia and the Department of Health and Aged Care.
From a financial perspective, the system begins to treat them differently. This can affect:
- Means-tested care fees
- Age Pension entitlements
- Asset and income thresholds
The partner remaining at home is generally protected to some extent, but the rules are not always straightforward.
How the family home is treated
One of the most important considerations is the treatment of the family home.
If one partner continues living in the home, it is generally exempt from the aged care means test, subject to applicable caps and eligibility rules. However, there are caps and limits that may apply depending on the broader financial situation.
The decision to keep or sell the home is not just emotional. It directly impacts:
- Ongoing aged care costs
- Cash flow
- Estate planning outcomes
This is an area where many families make decisions based on emotion rather than strategy, which can lead to higher costs over time.
Income and cash flow pressures
A common challenge for couples is that expenses increase while income does not.
You may now have:
- A RAD (Refundable Accommodation Deposit) or daily accommodation payments
- Ongoing care fees
- Household expenses for the partner remaining at home
At the same time, income sources such as pensions or investments may not increase to match these additional costs.
This creates a cash flow gap that needs to be carefully managed.
Centrelink and pension implications
When one partner enters aged care, Centrelink assessments can change.
Aged care fees and means testing in Australia are governed under the Aged Care Act 1997 and assessed in line with rules set by Services Australia and the Department of Health and Aged Care.
In some cases:
- The couple may continue to be assessed as a couple, depending on their living arrangements and individual circumstances
- In other cases, different thresholds may apply
The outcome is determined by Services Australia based on factors such as:
- Living arrangements
- Asset structure
- Income streams
Understanding how these rules apply is critical, as small changes in structure can lead to significantly different financial outcomes.
Emotional decisions vs financial outcomes
One of the most overlooked aspects of aged care planning for couples is the emotional side of decision-making.
Common scenarios include:
- Wanting to keep the family home at all costs
- Avoiding conversations about finances
- Delaying decisions until a crisis occurs
While these reactions are completely natural, they can lead to:
- Higher long-term costs
- Reduced financial flexibility
- Increased stress for both partners
Taking a structured approach early can help balance emotional priorities with financial outcomes.
Planning strategies for couples
Every situation is different, but there are several key strategies that can help:
Review asset ownership
The way assets are structured can influence aged care fees and pension outcomes.
Model different scenarios
Compare the financial impact of:
- Keeping vs selling the home
- Paying a RAD vs daily payments
Plan for the surviving partner
Ensure the partner remaining at home maintains:
- Financial security
- Access to income
- Housing stability
Seek advice early
Early planning provides more flexibility and better outcomes than reactive decisions.
Why early advice matters
Aged care decisions made under pressure are often the most costly.
When planning is done in advance:
- More options are available
- Financial outcomes can be optimised
- Stress is significantly reduced
For couples, this is particularly important because decisions affect two people in very different circumstances.
How Paris Financial can help with aged care planning for couples
At Paris Financial, we help couples navigate the financial complexity of aged care with clarity and confidence.
We work with you to:
- Understand your options
- Model different financial scenarios
- Structure your assets effectively
- Ensure both partners are financially protected
FAQ
What happens if only one partner goes into aged care in Australia?
Financial assessments change and aged care fees are calculated based on combined assets and income, with some protections for the partner remaining at home.
Is the family home counted in aged care means testing?
If a partner remains living in the home, it is generally exempt, though capped values may apply.
Will our Age Pension change if one partner enters care?
It may change depending on your assets, income and living arrangements.
Should we sell the home if one partner goes into care?
This depends on your financial situation. Modelling different scenarios is essential before making a decision.
If you’re starting to think about aged care for yourself or a loved one, having the right advice early can make a significant difference.
Source:
Department of Health and Aged Care
Services Australia – Aged Care Means Assessment
My Aged Care – Costs and Fees
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General Advice Disclaimer
The information in this article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives. Whilst every care has been taken in the preparation of this article, Paris Financial Services Pty Ltd, its directors, authors, consultants, editors and any persons involved in the construction of this article, expressly disclaim all and any form of liability to any person in respect of this article and any consequences arising from its use by any person in reliance upon the whole or any part of this article.