The need for Plan B: younger taxpayers’ “genuine surprise” over aged care co-contributions

New research commissioned by Not For Profit aged care, home care, retirement living, and social services provider Uniting NSW.ACT, shows younger Australian taxpayers believe those who can afford to pay more for aged care services should do so. A survey of 1,020 people and four focus groups revealed that, of people between the ages of 18 and 50, only 9% correctly estimated that the average contribution by older people with means to the costs of their aged care is roughly 5%.

“There was genuine surprise that co-contributions aren’t higher,” said Dr Rebecca Huntley, Lead Researcher with the independent research organisation that conducted the study, 89 Degrees East.

“The majority of those surveyed supported the belief that it is okay to ask older people to draw on their superannuation and savings to pay for aged care and were surprised this wasn’t already the case with three-quarters mistakenly thinking most people contributed much more than the actual levels of self-funding of the costs of care,” she said. Young taxpayers “think those with means should be paying more,” said Uniting NSW.ACT’s General Manager Advocacy & External Relations, Emma Maiden.

Seven in 10 participants said the main purpose of savings and superannuation is to support yourself in older age, and four in 10 believed older people with the means should pay more of their aged care costs. Of the participants, 65% expect to receive an inheritance. Through Plan B, The SOURCE has been advocating for those who can afford it to pay more towards the cost of their aged care. The Aged Care Taskforce, which has been asked to come up with ideas to make Australia’ s aged care system fairer and more equitable, recently said public submissions to the Taskforce show Australians feel “those with capacity to contribute should make a fair contribution to their aged care costs”.