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A study of more than 920,000 Australians who applied for aged care from 2010 to 2019 found government social welfare payments accounted for 84% to 91% of income for most applicants. Researchers say ongoing monitoring is needed to understand whether future retirees will have enough income to meet care costs, as aged care reforms introduce means-testing for some home services.
A study of more than 920,000 Australians who applied for aged care between 2010 and 2019 found that social welfare payments supplied 84% to 91% of income for most applicants, highlighting questions about how older people will fund care as the population ages. Researchers from Flinders University and the South Australian Health and Medical Research Institute say continued monitoring is needed to assess whether income support and retirement savings will meet future needs.
Published in Public Health Research & Practice, the study examined the financial circumstances, income sources and homeownership of older people entering aged care. The applicants had an average age of 82. Social welfare made up a smaller share of income for people in the highest income group, at 59%; the report does not provide the group’s income amounts in the supplied material.
The researchers found that the share of applicants reporting non-government income rose from 12% in 2010 to 30% in 2019. The amounts were still relatively small for most people, according to the report. About 60% owned their own homes, a fact the researchers say may coexist with limited regular income because a home is not necessarily an accessible source of funds for care.
Australia’s aged care system serves about 1.5 million people through government-subsidized services, including care at home and residential care. The study’s findings arrive amid ongoing aged care reforms, including the Support at Home Program, which introduces means-testing for nonclinical services delivered at home.
Income Security and Aged Care Costs
The findings matter because access to care can depend on financial circumstances, while most applicants in this study relied heavily on welfare income. The researchers say better evidence about income and financial security could help inform services that are more targeted and equitable. The study describes applicants from 2010 to 2019, however, and does not establish how current or future applicants will fare under later policy settings.
Homeownership also does not automatically resolve the income issue. As lead author Stephanie Harrison explained, older people can be “asset-rich, but income-poor”: a person may own a valuable property but lack regular money to pay care-related costs. Whether and how people use housing wealth to meet those costs is not answered by the reported findings.
The question is especially relevant as the population ages and the number of older people grows relative to the working-age population. That change may increase pressure on the systems that fund and deliver care, but the study does not quantify future demand, funding gaps or the effect of the Support at Home means test.
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What the Applicant Study Measured
The research used data from the Registry of Senior Australians Research Center and covered people who applied for aged care over nine years. It assessed sources of income and homeownership, rather than forecasting the full future cost of Australia’s aged care system. Its results therefore offer a profile of applicants during the period studied, not a direct measure of every older Australian’s financial position.
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. The report notes that compulsory superannuation began in 1992. Many of the older people in the study were near the end of their working lives when it was introduced, and therefore missed years of contributions compared with later generations.
The study was led by Flinders University and SAHMRI researchers and published under the title “Socioeconomic profiles of older people entering long-term care: a national evaluation using the Registry of Senior Australians.” The supplied report identifies the publication as a 2026 study and gives its DOI as 10.1071/pu25145.
““This study provides a foundation to support further research into how older people’s income, financial security and other circumstances impact when and how people use aged care.””
— Stephanie Harrison, lead author and associate professor at Flinders University and SAHMRI
Questions Beyond the 2010–19 Data
The study does not show whether the applicants’ income patterns continue today, nor does it predict how much future retirees will receive from superannuation or other sources. It also does not establish whether the Support at Home Program’s means-testing will change access to services or out-of-pocket costs for particular groups.
The supplied findings give proportions of income and changes in the share reporting non-government income, but not detailed dollar amounts, care expenses or outcomes by individual circumstances. It is also unclear from the report how homeownership translated into available funds, or how many people used assets to pay for care. Those gaps limit conclusions about the system’s future capacity.
Monitoring Future Retiree Finances
The researchers call for ongoing monitoring of older people’s income and financial security as new generations reach retirement. Further research could examine how income, assets and other circumstances relate to when people seek care and what services they use, as well as whether they can meet associated costs.
As aged care reforms proceed, the Support at Home Program’s means-testing will be a policy development to watch. The supplied report does not set out a future evaluation date or specific next research milestone. Any assessment of whether Australia can meet future aged care needs will require evidence beyond the 2010–19 applicant data, including how later retirees’ superannuation and other income develop.
Key Questions
What did the study find about aged care applicants’ income?
For most applicants studied, social welfare payments accounted for 84% to 91% of income. In the highest income group, the share was 59%.
Who was included in the study?
The research examined more than 920,000 older people who applied for aged care in Australia from 2010 to 2019. Their average age was 82.
Does owning a home mean someone can afford aged care?
Not necessarily. About 60% of applicants owned a home, but the researchers said homeownership may not provide readily available income for care-related costs.
Does the study show whether future retirees will have enough money for care?
No. The study reports historical applicant data and calls for further monitoring. It does not forecast future superannuation, care costs or the financial position of later generations.
What is the Support at Home Program’s relevance?
The program is part of ongoing aged care reforms and introduces means-testing for nonclinical services at home. The study does not assess how that policy will affect access or costs.
Source: medicalxpress.com
