Case study

Michael and Suzanne

Michael’s mum, Suzanne, had just moved into a retirement home. The decision hadn’t been an easy one, but as Suzanne got older — it became apparent that now was the best time to make the change.

Suzanne didn’t know how long she had left but knew that she wanted to make the most of every day. Even though she was nervous about such a big change, the promise of new friends, better care and more regular company appealed.

But they both knew that a retirement home would be a significant expense. After her husband died, Suzanne felt the full responsibility of protecting her family and her wealth. Now with her children fully grown, Michael wanted to make sure his mum wouldn’t have anything to worry about.

And that’s when they started talking to a Bridges Financial Planner. Normally, we might look to calculate the costs of a retirement home or aged care before the big move — which meant in this case we wanted to provide clarity and certainty as quickly as possible.

The number one priority was to understand the new yearly costs and the potential impact it would have on Suzanne’s savings, assets and equity. They both knew that the family home might need to be sold, but the preference was to hold onto it — if it was at all possible.

By having a good chat and modelling Suzanne’s options, it became apparent that the savings and Super might not stretch far enough and that the house might need to be sold down the track.

But at Bridges, our support and guidance doesn’t just stop at the numbers. We had to get innovative…

If the family could contribute towards 15% of the annual retirement home costs, the Super and income from investments would stretch far further and allow Suzanne to keep her home.

Suzanne was over the moon. With a clear plan in place, they both trusted us to put together Suzanne’s estate plan, getting everything in order and making sure her legacy would be protected.