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A national study of more than 920,000 older 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. The researchers say continued monitoring is needed to understand whether future retirees will have adequate income and access to care as the population ages and aged care reforms proceed.
A study of more than 920,000 older Australians who applied for aged care between 2010 and 2019 found that social welfare payments accounted for 84% to 91% of income for most applicants. The findings, published in Public Health Research & Practice, raise questions about how future retirees will meet care costs as Australia’s population ages and aged care services undergo reform.
The researchers, from Flinders University and the South Australian Health and Medical Research Institute, examined applicants’ financial circumstances, income sources and homeownership. Participants had an average age of 82. Only applicants in the highest income group received a smaller share of their income from social welfare payments: 59%, the study reported.
The proportion of applicants reporting some nongovernment income rose from 12% in 2010 to 30% in 2019. The researchers said those amounts remained relatively small for most people. The figures describe the study’s applicant group and period; they do not establish how much income all older Australians have today or what future applicants will receive.
About 60% of the applicants owned their homes, according to the report. Lead author Associate Professor Stephanie Harrison said this could mean some older people appear asset-rich while having limited regular income. She cautioned that owning a home may not provide readily available money for care-related expenses.
Income Security as Care Demand Grows
The findings matter because aged care costs and access can depend on a person’s financial circumstances, while many applicants in this study relied heavily on government payments. Australia has about 1.5 million people using government-subsidized aged care, including at-home and residential services, according to the source report. A larger older population could increase the importance of understanding whether income support remains adequate and accessible.
The study does not determine whether Australia’s welfare system can meet future demand, nor does it measure the full cost of care or predict future budgets. It does show that for many people entering the system during the studied years, government payments made up most reported income. That evidence can inform debate over how reforms affect people with different levels of income and assets.
The issue is also relevant to the new Support at Home Program, which introduces means-testing for nonclinical services delivered at home. The research provides financial-profile information, but does not assess the program’s effects. Whether its rules will change affordability or access for particular groups remains to be seen.
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A Retirement System in Transition
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. The researchers note that compulsory superannuation was introduced in 1992. Many of the older people in their study were already near the end of their working lives when it began, so they missed years of contributions compared with later generations.
The study, titled “Socioeconomic profiles of older people entering long-term care: a national evaluation using the Registry of Senior Australians,” used data from the Registry of Senior Australians and covered applications made from 2010 through 2019. It was published in 2026. Its time frame is important: the results describe an earlier group of applicants and should not be treated as a current snapshot of every older Australian.
The findings arrive amid ongoing aged care reforms, including the Support at Home Program. Harrison said the study offers a foundation for further research into how income and financial security shape when and how people use aged care. It is evidence about applicants’ circumstances, rather than an evaluation of the reform or a forecast of future service capacity.
“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.”
— Associate Professor Stephanie Harrison, lead author, Flinders University and SAHMRI
What the Study Cannot Establish
The study covers people who applied for aged care between 2010 and 2019; it does not establish the present financial position of all older Australians or predict the resources available to future applicants. The report does not quantify whether social welfare payments were sufficient to cover living and care expenses, or how many applicants delayed or went without care because of cost.
It is also unclear from the reported findings how the Support at Home Program’s means-testing will affect access, out-of-pocket costs or service use across income and homeownership groups. The study documents financial profiles, but does not test those policy outcomes. Researchers called for further work and ongoing monitoring rather than presenting a conclusion about the system’s future capacity.
Monitoring Future Retiree Finances
The researchers say further monitoring is needed to track whether future retirees have sufficient superannuation and other income to support their needs and access aged care. As reforms proceed, evidence on income, assets and service use could help assess how different groups experience the system. The study itself does not set out a timetable for that work or specify a future review date.
For now, the reported results offer a baseline from applicants in the 2010–2019 period, not a verdict on how well the system will handle future demand. Assessing that question will require newer evidence and information on how reforms affect costs and access.
Key Questions
What did the study examine?
Researchers examined the income sources, financial circumstances and homeownership of more than 920,000 people who applied for aged care in Australia from 2010 to 2019. Their average age was 82.
How much of applicants’ income came from social welfare?
Social welfare payments made up 84% to 91% of income for most groups in the study. In the highest income group, the share was 59%.
Does the research show Australia cannot fund future aged care?
No. The study describes applicants’ finances during 2010–2019 and calls for further monitoring. It does not forecast future funding or conclude that the system will be unable to meet demand.
Why does homeownership matter to the findings?
About 60% of applicants owned a home, but the researchers said homeownership may not provide cash readily available for care costs. They described a possible gap between assets and regular income.
What policy change is relevant to the findings?
The report points to the Support at Home Program, which introduces means-testing for nonclinical services at home. The study did not assess how the program will affect costs or access.
Source: medicalxpress.com
