Many Australians haven’t even considered saving for aged care by the time they reach retirement. Yet most retirees will need some form of assistance — ranging from help with everyday tasks to 24-hour care in a residential facility. Despite this, only 40% of older Australians are concerned about the cost of aged care.

Experts warn that failing to plan ahead can lead to unexpected financial pressure and limited care options. It may also increase stress at a time when stability is most needed. 

So why is aged care planning a growing concern?

Why  planning for aged care is a growing issue

Lack of awareness of the importance of planning

According to a report by Just Better Care, 64% of Australians are yet to start planning for or saving for aged care. This includes 41% of people who haven’t started planning and don’t intend to — as well as those who aim to start planning in the next few years.

Not budgeting for aged care can mean retirees have an average of $200,000 less in their retirement savings than those who do. Australians who have planned and saved for aged care expect to retire with an average of $574,179, compared to $379,545 among those who haven’t. This suggests that awareness of future care needs prompts people to set aside money for it. It may also encourage them to build higher overall retirement savings. The earlier planning begins, the more control people have over their lifestyle and level of care. Early planning also helps protect their financial independence in later life.

Growing costs of aged care

Studies indicate that the vast majority of older Australians prefer to receive care in their own home. However, experts say this can be more expensive than many people realise. Under the new Support at Home reforms introduced on 1 November, the average cost per hour for a support worker will be around $100 per hour. For those requiring consistent assistance, costs can quickly accumulate into tens of thousands of dollars per year.

This means that a person with average savings of $312,000 may only be able to afford a year of moderate-level care or four months of high-level care. Despite this, many people are going in blind to the costs they might have to pay. 47% of older Australians are not aware of the recently introduced Support at Home aged care reforms.

Experts warn that a lack of proper planning does not only create financial issues. It can also lead to increased anxiety, reduced choice and unnecessary stress for families.

Older Australians deserve the highest standard of care — but delivering that care relies on having a strong, skilled and dedicated workforce. As the demand for aged-care services continues to grow, Australia must ensure it has the people and expertise to provide the quality of support our ageing population needs.  There are opportunities across many roles — from personal carers and lifestyle assistants to allied health professionals and registered nurses. The range of positions is broad and continues to expand. This creates valuable opportunities for those considering a career in the sector, particularly individuals who are compassionate, reliable and looking for meaningful work.

Are you looking for a new career?

Aged Care Resumes can help. We are pleased to offer a range of services — including our resume writing service, cover letter writing service and selection criteria support.

Article References

Edser, L (12 November 2025) ‘’Horrified’: Why this crucial cost could derail your retirement plans’, The Senior, accessed 24 November 2025.

Just Better Care (n.d) ‘The 2025 Retirement Report’, Just Better Care, accessed 24 November 2025.

The World Today (21 November 2025) ‘Retirement savings gap for aged care support’, ABC News, accessed 24 November 2025.