But alongside that good news is a quieter reality that deserves attention. 

Researchers now talk about the difference between lifespan and healthspan. Lifespan being the total number of years we live and healthspan is the number of those years we live in relatively good health, free from chronic illness or disability. 

Ideally, those two would move closer together. Increasingly, they are not. 

Globally, the average gap between lifespan and healthspan is now 9.6 years. Around the year 2000, that gap was closer to 8.5 years. By 2019 it had widened to 9.6 years, an increase of roughly 13 per cent in less than two decades.ⁱ In human terms, that means many people are spending close to a decade of later life managing ongoing health conditions rather than enjoying full independence and vitality. 

Those years matter. They are years spent adjusting, adapting and sometimes relying on more support than expected. 

The changing shape of ageing 

Today, many of the conditions that shape later life are chronic rather than sudden. Heart disease, diabetes, arthritis, respiratory illness and cognitive decline often develop gradually and require long-term management. 

These are not just medical diagnoses. They influence how easily someone can travel, maintain a home, participate in community life or simply move comfortably through their day. 

Life expectancy here remains among the highest in the world, which is something to appreciate. But living longer also increases the likelihood of living with at least one ongoing health condition. Women, in particular, tend to live longer than men and often spend more years managing illness. 

This is not a reason for alarm. It is a reason for thoughtful preparation. 

Why this conversation belongs in financial planning 

When most people think about retirement planning, they think about numbers. How much is enough? How long will savings last? What return might be achievable? 

But behind every financial plan is a human story. 

A longer life can bring extraordinary opportunities: more time with family, more experiences, more freedom. It can also bring periods of vulnerability. Planning with compassion means acknowledging both possibilities. 

Even within a strong public healthcare system, there can be significant ongoing out-of-pocket costs. Specialist appointments, diagnostics, medications, dental care, physiotherapy, mental health services and other supports can become part of regular life over time. 

Private health insurance premiums also tend to rise with age. Having a financial buffer can ease stress during times when health already demands attention. 

Support at home or in care 

Many people hope to remain at home as they age. That may involve home modifications, mobility equipment or in-home assistance. If residential aged care becomes necessary, accommodation payments and ongoing fees can meaningfully affect retirement savings. 

Thinking about these possibilities in advance is not negative. It is an act of care for your future self and for those who may help support you. 

Protecting quality of life 

Healthspan is not only about avoiding illness. It is about preserving dignity, connection and purpose. It is about being able to visit loved ones, participate in meaningful activities, pursue interests and remain engaged with the world. 

Financial flexibility helps protect those choices. It allows room to adapt, rather than react. 

Planning for both vitality and uncertainty 

The widening gap between lifespan and healthspan gently reminds us that retirement planning is about more than longevity projections. 

Some people will enjoy decades of robust health. Others may face health challenges earlier than expected. A well-constructed financial strategy considers both strength and uncertainty. It balances enjoying the present with preparing for potential future care needs. 

At its heart, planning is not about fear. It is about reassurance and confidence. 

Adding life to years 

Living longer is a gift. But the real aspiration for most of us is not simply to add years to life. It is to add life to years. 

Understanding the growing divide between healthspan and lifespan allows for more honest conversations about what ageing may look like. And it reinforces why financial planning is ultimately about wellbeing, not just wealth. 

A thoughtful plan cannot control every outcome. But it can provide stability, options and peace of mind. And in the later chapters of life, those things matter deeply. Contact us today to get yours right.

i Washington Post | wellness 

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Giving isn’t just an act of kindness; it can also be a smart financial move. From helping loved ones today to creating a legacy for future generations, strategic gifting can align with your broader financial goals.

After all, Australians are generous. We consistently rank among the most charitable in the world with a study showing that, in the past year, 56 per cent of Australians have donated money and 31 per cent have donated their time.ⁱ

Australia, as a wealthy but ageing nation, is well-placed to grow charitable bequests, but the reality is less encouraging. The number of people leaving bequests to charities is low and the size of the bequests also “falls far short of international peers”, according to The Bequest Report by JBWere.ⁱⁱ

Why planned giving matters

Often, giving is reactive rather than planned. We might respond to a donation drive, an emotional TV ad, a friend’s fundraiser or gift property or shares to a family member.

But giving can also be intentional. Some people choose to set aside a portion of their annual income, commit to monthly donations or include charities in their wills. Others join workplace giving programs or support causes that reflect their values. In this way, generosity becomes less about impulse and more of a conscious decision.

There may be advantages in taking a more strategic approach. It can amplify your impact, build your reputation, open doors to new networks and potentially deliver tax benefits. Donations to organisations with deductible gift recipient (DGR) status can help to manage your tax position by reducing taxable income. If you give more than $2 to an organisation with DGR status, you can claim a 100 per cent tax deduction for your donation.ⁱⁱⁱ

Planned giving can help to create a lasting impact, building a legacy for family and community. It integrates generosity into financial planning, ensuring investments reflect personal or family values. In this way, it becomes a tool for involving younger generations in financial governance, teaching responsibility and shared purpose.

Strategic gifting can include early inheritance, education funding or contributions to a family trust. These approaches can reduce future taxes on your estate.

Structured giving options for lasting impact

For those looking to make a lasting impact on their communities, structured giving vehicles offer flexibility and control.

It can create long-term financial stability to favourite causes, providing predictable funding for charities. It can potentially reduce complexity in estate planning and ensure your wishes are carried out; and donating assets may offset capital gains tax liabilities.

Unlike mass market or other forms of giving, such as direct donations to charities, crowd funding and volunteering, structured giving involves using a vehicle designed to enable giving such as:

• Private Ancillary Funds – often used by families and individuals able to make a minimum initial contribution of $500,000 with a plan to grow the fund beyond $1 million.
• Public Ancillary Funds – suitable for those with a lower entry point of $20,000
• Community foundations or giving circles – enable donors to pool resources for local impact. Entry levels can be as low as $2,000.
• Donor Advised Funds or sub funds – a simpler, more flexible structure allowing donors to distribute funds over time. They can be established relatively quickly with some recommending an initial donation of a minimum $20,000.

Structured giving can also occur without using a dedicated vehicle through, for example, corporate cash donations or larger scale and planned contributions from individuals and families.

Giving isn’t just about generosity, it’s about creating a lasting impact.

We can help to create a giving strategy that supports your family and backs the causes you care about. Contact our team here.

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission

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For some, it is about unpacking boxes of decorations, preparing familiar family recipes and racing around the shops. For others, it is time to plan a beach day, host a casual BBQ, or simply enjoy a well-earned break from routine.

The festive season in Australia looks different for everyone. That’s part of what makes it so special. We live in a society full of rich cultural traditions. Some festive traditions have been passed down for generations, such as midnight Mass, lighting candles for Hanukkah, or gathering for a family meal on Christmas Day. Others have come to us through popular culture, often shaped by images of snowy winters and roaring fireplaces that don’t quite fit our sunny, southern hemisphere reality.

Think hot roast dinners in 35-degree heat, matching Christmas jumpers despite the sweat, and singing about snowmen and sleighbells.

And that’s okay. That’s part of the rich tapestry that is celebrating the festive season.

However, while tradition can be beautiful, it’s also worth asking yourself: do these traditions still bring joy to my life? Or am I doing them out of habit or obligation?

Reducing stress, reclaiming joy

The lead-up to the holidays can easily become overwhelming. This time of year often brings with it a long list of expectations about what to cook, how to decorate, where to be, and what to buy.

Trying to meet every expectation, real or imagined, can drain the joy right out of what is meant to be a time of celebration.

By letting go of pressure and embracing flexibility, we can shift the focus back to what really counts. Laughter. Connection. Rest. Reflection.

It is okay to opt out of what no longer fits. In fact, doing so often creates more space for what actually feels meaningful.

Rethinking what celebration looks like

While traditions can be a wonderful way to connect with our roots, they are not set in stone. Over time, life changes. Families grow and shift. Priorities evolve. The way we mark special moments can grow with us.

So, it is worth pausing to ask: are these traditions still adding joy to my life? Or am I continuing them out of pressure, or a sense of obligation?

Giving yourself permission to do things differently can be both freeing and fulfilling.

Making meaning in your own way

Reimagining tradition does not mean abandoning everything you love. It means choosing what feels right for you and creating space for joy, connection and rest – however that looks.

You might decide to swap the roast for prawns and salad and the pudding for a pavlova. Or ditch the mess of wrapping paper and presents in favour of shared experiences. You could even celebrate on a different day to reduce stress. Some people find joy in having a picnic in a beautiful location, taking a family beach walk at sunset, or simply spending the day unplugged from screens.

For others, creating new traditions might involve volunteering in the community or cooking dishes from their cultural heritage.

Whether your festive season is full of people or quiet moments, it only needs to reflect what matters most to you.

The season is yours to shape

There is no one way to celebrate. What is right for one person may not suit another and that is the beauty of it. The festive season does not have to look a certain way to be valid or joyful.

You might still love baking the same cake your grandmother made or singing carols in your street. Or you might find joy in starting completely new customs that reflect your values and lifestyle today. Either way, the important thing is that your celebrations feel true to you.

Small moments can become meaningful rituals too. A quiet morning coffee, a favourite song playlist, or calling someone you have not spoken to in a while are all things that can bring warmth and joy without adding stress.

Whatever this season means to you…

We hope it brings you joy.

If you’re looking for some guidance to plan your moments, our team are here to help. Contact us here today.

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Let’s face it, during the cooler months, it’s easy to slip into hibernation mode. The couch is comfy, the heater’s on, and motivation to move or get outdoors can drop. But as the seasons change, so too can our mindset. Reconnecting with nature, moving our bodies, and creating space to breathe deeply again can have a powerful impact on both our health and our outlook on life.

Why Nature Still Matters—Especially Now

Even small bursts of time outside have been shown to boost mood, improve sleep, and support the immune system. In fact, just two hours a week in nature has been linked to better physical health and wellbeing. That might look like a walk around your neighbourhood, time in the garden, or even just enjoying a cuppa in the sunshine.

Movement matters, too. You don’t need to run marathons; just gentle, regular activity can help ease the aches and lift your energy. Think: beach walks, golf with friends, or weekend strolls in the bush. These habits are not just feel-good extras; they’re part of a healthy, balanced lifestyle that supports longevity and independence.

Retirement Is More Than Financial

While planning your retirement finances is critical, true quality of life in retirement comes from more than just your bank balance. As Ursula Boorman, Managing Director at Direct Advisers, explains:

“A well-funded retirement is important, but it means very little if your health and well-being aren’t part of the picture. As we support clients approaching retirement, we encourage them to think holistically, planning not only for financial freedom, but for a lifestyle they truly enjoy.”

Whether you’re nearing retirement or already there, it’s worth asking: What does wellbeing look like for me right now? Do I have the energy and clarity I want? Am I spending time doing the things that matter?

Final Thought: Build the Life You Want to Live

Retirement isn’t just a destination; it’s a season of life that deserves to be lived well. Getting your finances in order is a powerful step, but don’t forget to take care of your body and mind along the way.

If you’d like to talk to someone about your retirement plan and how it aligns with the lifestyle you want, reach out to the team at Direct Advisers. We’re here to help you feel confident about the road ahead. Contact us here.

References

• Spending at least 120 minutes a week in nature is associated with good health and wellbeing: Nature.com study
• How nature impacts your immune system and sleep cycles: Ask the Scientists – Outdoors
• The psychological benefits of time in nature: American Psychological Association (APA)

The post Recharging for the Season Ahead: Your Health, Your Wealth, Your Wellbeing appeared first on Direct Advisers.

On the positive side, there will be more packages available, which should reduce waiting times. But there will also be changes to the contributions (fees) you pay – and for some people, this could mean paying more for the care services you access. 

Here’s a simple overview to help you understand what’s changing and how you can prepare. 

What’s changing? 

The existing Home Care Packages will cease on 1 November 2025, and everyone will transition to Support at Home. You might not see a disruption in your services, but you will notice changes.  

Some key differences in the new system: 

• A new fee structure, based on your financial circumstances and the services you access 

• You will continue to be charged by your provider, but only after you have received services 

• Eight levels of care instead of four, to better match your needs, with additional funding for assistive technology and home modifications (where approved) 

• Budgets will be allocated quarterly – and if not used, won’t carry over. 

These changes apply to both new applicants and people who are already receiving care.  

What about fees? 

The Government will continue to subsidise care costs within your approved budget, but you’ll be expected to make a contribution. Here’s how the new contributions will work: 

• What you pay depends on your financial situation – whether you receive a full or part pension, or are self-funded 

• Clinical care (like nursing or physiotherapy) will be fully funded by the Government 

• You may pay more for everyday living services (like meal preparation or cleaning) than you do for independence supports (like personal care or transport). 

• If you were approved for, or receiving, a Home Care Package as at 12 September 2024, you will be eligible for fee concessions, so you are no worse off under the new rules. 

Importantly, there’s a lifetime cap on your contributions – you will not pay more than $130,000 (indexed) over your lifetime. 

Your package level sets the total funding available to pay for care, but 10% is allocated to the care provider to cover the cost of care management. You then work with your provider to decide how you want to spend the rest of the budget. The provider sets their fee for services so it’s worth checking what they charge – the more they charge, the less support you may be able to afford from your package. You could always choose to pay extra if your package does not cover all the care you need. 

How to be ready? 

To make the most of the new system, it’s a good idea to take a few steps before November: 

• Think about your care needs – what help do you need and what services will make a difference to you? 

• Talk to your current provider – if you’re already receiving care, they should be in touch to help you transition. You’ll need to sign a new service agreement under the new system. 

• Book an assessment – if you need help but don’t already have a package, contact My Aged Care to arrange a care needs assessment. This takes time, so it’s best not to delay. 

Need help to understand your options? 

Navigating aged care can be complicated – especially with these new changes. That’s why we offer specialist aged care advice to help you plan and make the best choices. 

We can help you: 

• Understand how the changes affect you 

• Calculate estimates of your contributions 

• Make sure your finances and investments are set up to provide the cashflow you’ll need. 

If you’d like to chat about your options or get help preparing for the changes, we’re here to help. Just give us a call. 

IMPORTANT INFORMATION: This document has been prepared by Aged Care Steps Pty Limited, ABN 42 156 656 843 AFSL 486723, based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Aged Care Steps Pty Limited makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at 8 July 2025. 

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It became clear that extra time was needed to allow the whole sector to be better prepared and get ready for the significant changes ahead. The Government needs more time to finalise the rules. Aged care providers need more time to train their staff, adjust administrative systems, and ensure they can continue to deliver quality care under the new framework.

One of the biggest changes is the introduction of the new Support at Home program, which will replace the current home care system. More time is needed to ensure a smooth rollout for those receiving care at home.

What does the delay mean for you?

For older Australians and families, this delay presents a window of opportunity. While the reforms aim to improve aged care services and long-term sustainability, they also bring increased complexity and the likelihood of higher fees.

The extra four months give you valuable time to better understand how your care choices and financial situation might be affected – and to seek expert advice before the new rules apply.

So, what does the delay mean for you?

• If you’re thinking about a move into residential aged care, you may still be able to access the current fee arrangements before the new (and potentially higher) fees take effect in November.
• If you’re currently receiving home care, the existing arrangements will continue until 1 November, at which time you will transition to the new rules. Now is a good time to review your current service agreement and speak with your care provider about how the changes might affect you.
• Most importantly, if you haven’t started planning yet, don’t wait. It takes time to organise assessments, compare options, and secure a place with a suitable provider.

What you should do now

Aged care decisions are complex and deeply personal. The best outcomes come from having a clear understanding of how your care needs, financial situation, and personal preferences align.

That’s where a qualified financial adviser with aged care expertise can help – guiding you through your options and helping you make well-informed, confident decisions.

Take advantage of this extra time. Use the coming months to plan ahead, ask questions, and access the right advice and support.

If you’re not sure where to begin, we’re here to help. Reach out to our team here.

IMPORTANT INFORMATION: This document has been prepared by Aged Care Steps Pty Limited, ABN 42 156 656 843 AFSL 486723, based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Aged Care Steps Pty Limited makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current as at 16 June 2025.

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Aged care funding and services have seen major changes in the years since the 2021 report of the Royal Commission into Aged Care Quality and Safety, and this year is no exception.

1 July 2025 marks the start of a host of new programs and improvements for the aged care sector. Several announcements have already been made this year, covering wage rises for aged care workers and nurses, and an increase in government funding for residential aged care accommodation.

In one of the most significant changes, the new Aged Care Act begins on 1 July. The Act aims to ensure the viability and quality of aged care.

A report by the Aged Care Taskforce last year calculated the residential aged care sector will need $56 billion by 2050 to upgrade facilities and build more rooms.

Current funding arrangements aren’t working. In the 2022-2023 financial year, almost half of all accommodation providers made a loss.

Some $300 million in federal grants will be delivered to accommodation providers this year to help with capital works upgrades.

And to improve the viability of the facilities the government is introducing other measures including larger means-tested contributions from new entrants and a higher maximum room price that is indexed over time.

Aged Care Minister Anika Wells says half of new residents will not contribute more under the new consumer contributions.

“For every $1 an older Australian contributes to their residential aged care, the government will contribute an average of $3.30,” says Wells.

Support at Home

The Aged Care Act also aims to support more people who want to stay in their own homes as they age. The federal government is investing $4.3 billion in a new Support at Home program, which replaces the Home Care Packages and the Short-Term Restorative Care programs.ⁱⁱ

There’ll be more than 300,000 places available over the next 10 years and a shorter waiting period for Support at Home, and there’s a goal to simplify and improve the assessment process, making it easier to access different services as needs change.ⁱⁱⁱ

Similar to the Home Care Package, Support at Home will provide:

• clinical care, such as nursing and occupational therapy,
• help with maintaining independence including showering, dressing and taking medications, and
• support for everyday living tasks such as cleaning, gardening, shopping and meal preparation.

The government will pay 100 per cent of clinical care costs while Support at Home recipients will make a contribution towards independence and everyday living costs. The contribution amount will be calculated using the Age Pension means test and it depends on the level of support needed and the combination of income and assets. The highest classification with the most funding will receive a package of services worth $78,000 per year. There’ll also be funding for assistive technology and home modifications and end of life care.

A new cap on contributions will also apply. No one will pay more than $130,000 in their lifetime – whatever their means or length of care at home or in residential accommodation.

Refunding deposits

The new Aged Care Act also requires aged care accommodation providers to refund residents’ lump sum deposits within 14 days if they move to another facility or pass away. Interest must be paid on the lump sum until the amount is repaid. As before, some deductions are permitted provided they were included in the original agreement.

No disadvantage

For those already receiving home care packages or in aged care accommodation, the government says a ‘no-worse-off’ principle will provide certainty that they won’t have to pay more under the new laws.

Whether it is you or a loved one who is considering moving into aged care, it can be an emotional time. With these new changes being implemented, you may have a few questions. Please give us a call if you’d like to hear more about the changes or if we can help to assess your next step or plan ahead. Contact our team here.

i Once in a generation aged care reforms | Health Portfolio Ministers | Australian Government Department of Health and Aged Care

ii Support at Home program | Australian Government Department of Health and Aged Care

iii About the Single Assessment System for aged care | Australian Government Department of Health and Aged Care

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