Home' Australian Ageing Agenda : AAA Nov-Dec 2013 Contents GROW ING WITH AGE
1. Peter Lee Associates Large Corporate and Institutional Transactional Banking Survey Australia. Rank vs. top 4. Quantitative
measures from 590 votes in 2013. Westpac ranks no. 1 for citations as 'lead' transactional bank from 2004-2013. Westpac
ranks no. 1 in the Peter Lee Associates relationship strength index score across the total respondent base. 2. Peter Lee
Associates Large Corporate and Institutional Relationship Banking Survey Australia. Rank vs. top 4. Quantitative measures
from 586 votes in 2013. Westpac ranks no. 1 for citations as 'lead' relationship bank from 2012-2013. Westpac ranks no. 1
in the Peter Lee Associates relationship strength index score across the total respondent base. Westpac Institutional Bank
is a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 ("Westpac"). DW_WBC488A1_IMEDIA
Satisfaction 20131,2 No.1
From the early days as a growing
new sector to the burgeoning
industry of today, the story of aged
care is ingrained in our business.
With a national team dedicated to the Aged Care &
Retirement Living industry, we work collaboratively
with our commercial and not-for-profit clients, to build
bespoke financial solutions.
To find out more, contact Kevin Griffith,
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T 02 8219 8407
Government reforms to
encourage low ca re hostel
Aged Care Act
Hoga n Review
Living Better "
decrease, affecting their liquidity levels
(more income, but less cash on hand).
The problem to highlight here occurs
in the situation where the prospective
resident's only asset is their house and
they are required to sell the house in
order to pay a RAD instead of a DAP.
This has been normal practise in the past
when residents in low care sold their
house and paid a bond. However, under
the new reforms the act of selling the
house to pay for a RAD is likely to incur
additional care fees (if the house is sold
for more then $144,500). The provider
must inform the prospective resident of
this, and yes, there is an understanding
that this is likely to influence their decision
as to whether to pay a RAD or DAP, but
disclosure of this fact must be made and
the prospective resident must understand
the consequences. Failure to do so will
not only incur the wrath of the resident
and probably their families, but can also
be construed as a form of misleading and
deceptive conduct, exposing the provider
to possible action from the ACCC.
Reforms always have "unintended
consequences" and perhaps this is one of
them and changing provider behaviour
is as important in the reform process as
changing consumer behaviour.
So, when operating in this "new space"
just make sure your RAD and DAP don't
get you nabbed. n
Mark Sheldon-Stemm is a Director at
Over 65s more likely to make
poor financial decisions
By Natasha Egan
AGEING MAY AFFECT rational decision-making abilities in the same way
it impacts motor skills, memory and other cognitive abilities, according
to a new study which found people over 65 are more likely to make
inconsistent choices and poor financial decisions than other age groups.
The researchers from the University of Sydney, New York University
and Yale's School of Medicine also found that the older cohort is
the most risk-seeking group of all, which together could lead to
implications for retirement plan choices.
Using a detailed socioeconomic profile for individual participants
aged 12 to 90 years, the study investigated differences in decision-
making in terms of choice consistency, rationality, and the individuals'
preferences for known and unknown risks.
Participants were asked to make a series of financial decisions and choose between
options that carried a risk or reward ranging from $5 to $125. Adults aged 65 and older
with numeracy and IQ skills equal with younger study participants make "strikingly
inconsistent and irrational choices" compared with the younger cohort, the study found.
Dr Agnieszka Tymula from the University of Sydney's School of Economics said
she and her colleagues were surprised by the results. "The fact that older adults were
really at their peak of performance in terms of IQ scores and still showed such decline in
choice consistency and rationality is really worrying," Dr Tymula said.
As a result of mistakes, older adults achieved around 39 per cent less than the
expected earnings of young (aged 21-25) and midlife (aged 30-50) adults, the study found.
The results have implications for how older people make important decisions and
may account in part for the high number of elderly people facing problem-gambling or
falling victim to online scams, Dr Tymula said.
The study, Like cognitive function, decision-making across the lifespan shows
profound age-related changes, was published in the Proceedings of the National
Academy of Sciences. n
Dr Agnieszka Tymula
www.australianageingagenda.com.au | 29
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