An Interview with Katie Gaunt
Most of us these days are comfortable with the idea of long-term planning for our retirement. It’s the uncomfortable bits that come later that we tend to avoid.
The inevitably of getting old and becoming less independent is something we all must come to grips with sooner or later. But those who do it sooner can give themselves a better chance of a happy final innings in life.
Helping people successfully plan for and navigate the transition to aged care, as well as connecting that to an overall financial plan, is the mission of Katie Gaunt, a principal adviser at Minchin Moore and a specialist in this area.
Contrary to the regular horror stories in the media about neglected and disconnected old people in aged care homes, Katie sees plenty of positive outcomes in her role. And she puts that down to getting on top of these issues as early as possible.
This is particularly the case with people both living longer these days and living longer in the retirement phase. Australia ranks among the leading nations in the world for life expectancy, which as of 2024 was 86 for women and 82 for men.
This increasing longevity obviously has implications for healthcare needs, residential care, as well as required advances in independent living. Of course, societies need to plan for these changes, but so do we all as individuals.
Katie is well-placed to guide people in this area. With a Bachelor of Management, an Advanced Diploma of Financial Planning and a Certified Financial Planner, Katie brings more than two decades of financial services experience to her role. She is particularly skilled in advising clients who are approaching retirement or are retired, as well as individuals and families navigating major life events.
Below is the transcript of our interview with Katie:
Firstly, Katie, can you tell us a little bit about your background and what led you to specialise in this area of aged care planning?
“I have been working in financial services for more than 20 years and the most fulfilling years have been those as a financial adviser. My interest in aged care was sparked a few years ago when a client needed help with some changes to their cashflow following a move into residential care. It occurred to me that many individuals and families don’t like to talk about ageing, even though it is a natural and inevitable part of life. Long-term financial plans often don’t take sufficient consideration of later-in-life needs and preferences, and I think this is an area that needs more of our focus.”
At a social occasion, how do you summarise what you do when people ask about your job?
“I tell them that my job is to help people who are close to retiring, or are retired, make smart decisions about their money and plan well for their future.”
Why do you think people find it so hard to talk about their aged care needs and how do you overcome the resistance?
“It’s because talking about aged care means thinking about getting older, both physically and mentally. This can be confronting and scary. Ageing is not something people typically look forward to.
“The approach I take to talking about those issues will differ depending on each client and their unique circumstances. Sometimes we will suggest making provision in our long-term financial projections for higher costs later in life, for healthcare for example. And as a starting point we’ll just talk about the numbers. Sometimes we will talk about the clients’ current home and ask whether it is still likely to be suitable in 10-20 years. We might ask about longevity in the family, where clients would like to be living when they are older and what preferences they may have for their ultimate care and well-being.
“Importantly, I try to keep these conversations positive and focused on how they link back to the clients’ long term financial plan.”
What have you found are the key challenges people face in making the transition from living independently at home to aged care?
“A lot of the challenges arise from not thinking of these issues well beforehand. For instance, there may not be much time to consider options before a decision on care needs to be made. Choices may be limited and there may be delays in accessing home or residential care. There also may be issues involving the client’s capacity. Family members may disagree on care needs and the way forward or find it difficult to understand the (complex) aged care fee models and the financial impact of those. Suffice to say there are plenty of misconceptions out there about residential care contracts, including when or if the family home must be sold when someone enters care. What all that means is that in the rush to establish care arrangements important financial considerations can be overlooked.”
What typically is the role of the wider family and how do you negotiate all the potential minefields?
“The family’s role is to provide practical, and – depending on capacity – financial and administrative support. Generally, the higher the number of family members involved the more challenging it can be to navigate aged care decisions. And some decisions can spark heightened emotions, leading to stress and fractures in even the closest families. In these times, we often will take on the role of ‘coordinator’, working to keep lines of communication both open and professional between family members. Of course, we only perform this role when we have permission to do so from the client (or whoever has enduring power of attorney).
“Ideally, we will work with the family unit to ensure our client’s needs are prioritised, which involves advising on financial matters, navigating privacy preferences, and working with the client’s accountant and solicitor. Aged care is a complex area for families to navigate – there are decisions to be made relating to personal care, medical treatment, financial matters, legal issues, and decisions with tax implications. All of these should be made with the client at the centre – a principle we always return to when helping clients with aged care needs.”
Obviously, not every client is the same. What are the key variables that distinguish one case from another?
“Every client is unique, and their circumstances can vary across a range of fronts. For instance:
- Relationship status: Is the client single or partnered? Who might be impacted by a change in circumstance?
- Financial position: We consider questions like whether there will be sufficient cashflow available to meet aged care costs. Will assets need to be sold, and if so, what are the wider implications in areas like tax? Can costs be funded privately if there is a long wait for care?
- Residential preferences: Where do the clients want to live?
- Advocacy: What is the client’s support network among family or friends? These people can be a key influence on the client’s mindset and in helping them manage changes in health and circumstance.
- The ‘Where and How’ of Care: Will a couple be separated (and end up having to fund the cost of two homes) if one moves into residential care? Can care be provided at home, and for how long
- Healthcare: These needs can vary significantly. The cost to a client of receiving ‘light’ healthcare services at home will differ significantly from the impost facing a client with advanced dementia living in residential care.
- Long-term Planning: Have later-in-life costs been considered in the client’s long-term financial plan? In my view, it can be a smoother transition for individuals and families when ‘plan B’ and ‘plan C’ have already been discussed and considered in the plan.”
How much of the challenge of aged care planning is technical, how much is resource-driven and how much is psychological?
“In my view 1/3, 1/3, 1/3. All are equally important. I believe to provide financial advice in aged care you need a good grasp of the aged care system and the funding aspects, so that you can best understand the impact on a client’s long-term financial plan and make recommendations accordingly. You need cashflow and modelling tools to show clients the financial impact of various scenarios so they can make an informed decision about their care. And you need to be able to establish a rapport with clients and their family members so you can have open conversations and then provide personalised advice. I think you need to truly care about your clients to advise in this space and that won’t be for all advisers.”
With all that in mind, what should people look for when seeking out a specialist to guide them in aged care planning?
“For financial advice, I recommend looking for a licensed adviser with both technical knowledge of and interest in aged care – someone who has experience in advising clients and their families. Do your research and arrange an initial introduction to see if you are a good ‘fit’ in working together. Ask yourself whether you think the adviser will be able to work long term with you and your family? Do you feel comfortable talking with them about your circumstances, your needs and your concerns?
“In our industry, some advisers provide aged care advice only, and that may suit someone managing their own financial affairs and long-term strategy. But there are also firms that provide aged care advice as well as comprehensive financial advice and ongoing services. I feel this sort of firm will best suit clients who prefer to have a long-term relationship with their financial adviser.”
