Can Australia's social welfare system handle future aged care needs?
As Australia's population ages, nine in 10 older Australians applying for aged care receive social welfare payments. Researchers from Flinders University and the South Australian Health and Medical Research Institute (SAHMRI) have conducted a new study that examined the financial circumstances, sources of income and homeownership of more than 920,000 older people (average age 82) who applied for…
As Australia's population continues to age, a significant portion of older adults seeking aged care services are relying on social welfare payments to meet their financial needs. According to a new study published in the journal Public Health Research & Practice, nine out of ten older Australians applying for aged care between 2010 and 2019 received some form of income support.
The study, led by researchers from Flinders University and SAHMRI, analyzed the financial circumstances, income sources, and homeownership status of over 920,000 older individuals. The findings reveal that social welfare payments accounted for between 84% and 91% of total income for most older applicants seeking aged care. Notably, only those in the highest income bracket had a lower proportion of social welfare payments making up their total income, at 59%.
Despite 60% of these older Australians owning their homes, researchers suggest that homeownership does not necessarily equate to financial stability for care-related expenses. The study highlights the importance of monitoring and maintaining adequate income support systems for the growing older population, ensuring equitable access to essential care services.
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