For most entrepreneurs, the business is more than just a job; it’s a living, breathing extension of who they are. They spend decades pouring late nights, creative energy, and capital into building something that lasts. But there is a unique irony: they may be experts at planning for the next quarter, but most of them often neglect the “exit strategy” for their own physical well-being.
When we talk about retirement, we usually focus on the “when.” But as we get older, the “where” becomes much more important. For many Australians, the goal is to “age in place.” That means staying in the comfort of our own homes, surrounded by our memories and communities, rather than moving into residential care. Achieving this requires more than just a healthy superannuation balance. Here are some tips on how to bridge the gap between running a profitable company now and securing a comfortable future for you to age at home.
Moving Beyond the “Business is My Super” Mentality
It is the classic founder’s trap: assuming the eventual sale of the business will fund everything. While your business may be your greatest asset, it is also your least liquid one. To age comfortably at home, you need cash flow that doesn’t depend on you being behind the desk.
Besides, relying solely on a future sale is risky. Markets shift, and health transitions don’t always wait for a “bull market.” Diversification is your best bet. By pulling profits out of the business early and often to build a robust portfolio—including superannuation and outside investments—you create a safety net. This ensures that if you need to modify your home or hire private help, you aren’t waiting for a buyer to sign a contract to afford it. More importantly, seeking financial advice for retirement and wealth management early in the piece can help you structure these drawdowns without hampering your business’s growth.
Setting the Stage for Ageing in Place
Aged care isn’t a binary choice between “doing it all yourself” and “moving into a facility.” The modern Australian landscape offers a sophisticated middle ground. From basic help with the gardens to complex nursing support, aged care at home allows you to maintain your independence while getting the specific assistance you need.
From a financial perspective, you need to account for two main pillars of home-based care:
- Structural Modifications: Your home needs to evolve with you. This might mean renovating a bathroom for safety, installing ramps, or upgrading lighting. These are upfront capital expenses that entrepreneurs should budget for well before they become “emergencies.”
- Service Costs: While the Australian government provides the Support at Home program (replacing the Home Care Packages Program), there is often a gap between government subsidies and the level of premium care an entrepreneur might desire. Having a dedicated care fund within your wealth strategy ensures you can top up these services to maintain your lifestyle.
Treating Succession Planning as a Health Strategy
If you are still the key person in your business, your ability to age at home is at risk. A health hiccup shouldn’t mean the business collapses, and a business crisis shouldn’t mean you can’t afford your care.
Effective succession planning is actually a form of long-term healthcare. By mentoring a successor or implementing robust systems that allow the business to run without your daily input, you convert a high-stress obligation into a passive income stream. This transition allows you to shift from Chief Executive to Chairman, reducing the stress that often accelerates ageing while keeping the dividends flowing to pay for your home-based support.
Considering the Tax Man and the Family Home
In Australia, the family home is often a protected asset when it comes to the Age Pension assets test, but the rules change if you start using business structures to hold property. Entrepreneurs often have complex setups involving family trusts or companies.
As you plan to age at home, it is vital to review how your home is held. You want to ensure that your living situation is secure and that you aren’t inadvertently creating a tax headache for your heirs or yourself when you need to access home equity. Strategies like downsizing contributions to super can also be a powerful tool if you decide to move from a large family home to a more manageable, accessible property.
Making the Move Toward Peace of Mind
Planning for a time when you might be less mobile isn’t an admission of weakness. If anything, it’s an admirable trait of a visionary leader. You wouldn’t run a company without a contingency plan, and your life deserves the same rigor.
The goal is to ensure that your home remains your sanctuary, not a source of stress. By diversifying your wealth, formalizing your succession, and understanding the costs of home-based support, you ensure that the rewards of your hard work are used exactly where they should be: keeping you comfortable, independent, and right where you belong.