Objective: To explore reasons for the gap between the perception that high home ownership provides a strong pillar of funding for aged care accommodation and the actuality of half of those in residential care having this cost met by the Accommodation Supplement.
Methods: Review of data from Australian Bureau of Statistics and administrative sources, and recent research studies.
Results: Trends in payment methods show continuing reliance on the Accommodation Supplement. Reasons are found in patterns of home ownership at older ages, changes in tenure and living arrangements over the age range, and increasing use of the exchange value of housing assets. Policy tensions arise between protecting access for low means residents and requiring those who are able to pay to do so.
Conclusions: The housing assets pillar at advanced ages is not as strong as early in retirement and makes it increasingly unreliable as a source of funding.
- living arrangements