How Australian Seniors Can Protect Their Finances and Stay Home Longer
Key Takeaways:
Conduct an honest financial assessment—look at your income, expenses, super balance, and Age Pension eligibility together.
The Australian Government's Support at Home program (launched November 2025) has replaced the old Home Care Packages, offering more flexible, person-centred funding to help seniors age in place.
Downsizing can unlock your home equity and potentially qualify you for a Downsizer Superannuation Contribution of up to $300,000 per person (or $600,000 per couple).
Disclaimer: This content does not constitute financial advice. The article below is for the readers' information and education only. The writers at Friendly Finance are not financial advisors and are therefore not authorised to offer financial advice. Friendly Finance recommends our readers to always do their own research and seek independent advice as needed. (This article was updated on February 19, 2026)
While it's nice to be part of a welcoming community of like-minded seniors, most of us would prefer to stay in our homes for as long as our health and finances allow. In the back of our minds, we are aware that one day, we might have to move to a facility, but until then, we want to remain independent in our own homes for as long as possible. Thankfully, there are several strategies that can help make that a reality—and many of them start with smarter financial planning.
In this post, we'll highlight 10 effective financial tips to help you live independently well into the future.
1. Assess Your Financial Situation Honestly
To maintain your independence, you must first understand your complete financial picture. Take a hard look at your income sources—this includes your superannuation drawdowns, any investment income, rental income, and your Age Pension entitlements. Also take stock of your regular expenses and outstanding debts.
If you haven't already, use the MoneySmart Retirement Planner (run by ASIC) to estimate how your super and Age Pension could work together to fund your retirement. For Australians over 67, it's worth noting that roughly 39% receive the full Age Pension and a further 24% receive a part pension—so understanding where you sit can unlock entitlements you may not be claiming. Assessing your financial health honestly will help you identify areas where changes can ensure long-term stability.
2. Consider Downsizing
Downsizing can be one of the smartest financial moves you make in retirement. Moving to a smaller home can reduce maintenance costs, utility bills, and council rates. Beyond the savings, selling your current home could provide a substantial lump sum that can be invested or used to cover living expenses, healthcare, and other needs.
From a superannuation perspective, if you're aged 55 or older and sell a home you've lived in for at least 10 years, you may be eligible to make a Downsizer Contribution of up to $300,000 (or $600,000 per couple) into your super fund—without it counting towards your standard contributions cap. This can be a powerful way to boost your retirement savings at a stage where other contribution options may be limited. Speak with a licensed financial adviser or your super fund before making this decision.
3. Invest in Home Modifications Wisely
If you prefer to stay in your home, consider investing in modifications that make it safer and more comfortable as you age. Improvements like adding grab rails or bathroom grab rails for safer ageing in place, installing stair lifts, or remodelling bathrooms can be costly upfront but can prevent expensive injuries and medical bills in the long run.
The good news is that funding assistance is available. Under the new Support at Home program's Assistive Technology and Home Modifications (AT-HM) Scheme, eligible older Australians can access government funding specifically for home modifications to support ageing in place. Apply through My Aged Care (myagedcare.gov.au) or call 1800 200 422 to find out what you may qualify for.
4. Explore Support Services
Just because you want to live independently doesn't mean you can't access some support. Utilising the new Support at Home program is a great starting point. Launched on 1 November 2025, this revamped Australian Government initiative replaced the old Home Care Packages Program, offering a more streamlined and person-centred approach to in-home aged care.
Under Support at Home, funding is available for services including personal care, nursing, allied health, social support, meal preparation, transport, and home modifications—all tailored to your individual assessed needs. There are several organisations, including United For Care, which enable you to access this support while maintaining independence and providing you with assistance on certain aspects of your home life.
To access Support at Home, you'll need an aged care assessment. You can apply online at myagedcare.gov.au or call My Aged Care on 1800 200 422. Once approved, you choose a registered provider who will work with you on your personalised care plan. Keep in mind that a means-tested contribution may apply, but clinical care costs are fully covered by the government.
5. Maximise Your Age Pension and Concession Entitlements
Many Australian seniors leave money on the table by not fully understanding or claiming their Age Pension entitlements and related concessions. To receive the Age Pension, you must be 67 or older, an Australian resident for at least 10 years, and meet the income and assets tests administered by Services Australia.
From 20 September 2025, the maximum full Age Pension increased to $1,149.00 per fortnight for singles and $1,732.20 combined per fortnight for couples. Even a part pension can be valuable—it also unlocks the Pensioner Concession Card, which provides discounts on medicines, healthcare, utilities, and transport.
If your income is too high for the Age Pension, you may still qualify for the Commonwealth Seniors Health Card, with the income threshold now sitting at $101,105 per year for singles and $161,768 combined for couples (from September 2025). It's worth speaking with a Services Australia Financial Information Service (FIS) officer—this service is free and available to all Australians, regardless of whether you're currently receiving any payments.
6. Maintain a Healthy Diet on a Budget
Eating healthily doesn't have to be expensive. Planning your meals in advance, buying in bulk, and taking advantage of pensioner discounts at supermarkets can all make a difference. A balanced diet helps prevent costly health issues such as type 2 diabetes, cardiovascular disease, and osteoporosis—conditions that disproportionately affect older Australians and come with significant healthcare costs.
Look into community food programs in your area—many local councils and community organisations offer subsidised or free meal delivery services for eligible seniors, some of which may be funded through the Support at Home program or the Commonwealth Home Support Program (CHSP).
7. Prioritise Sleep for Health and Savings
Getting 7 to 9 hours of quality sleep is very important for people of all ages—but it is especially critical for older people, who can be more susceptible to a range of conditions without it. Poor or insufficient sleep has been linked to higher rates of heart disease, cognitive decline, and falls in older Australians.
Making sure you have enough rest is not just a wellbeing tip—it's a financial strategy. Avoiding sleep-related health issues can mean fewer doctor's visits, fewer hospital stays, and lower out-of-pocket costs over time. If you're having trouble sleeping, speak to your GP, as this may be covered through Medicare or your existing healthcare arrangements.
8. Exercise Regularly to Avoid Medical Costs
Regular physical activity can prevent a host of health issues, saving you money on medical bills and reducing the likelihood of a hospitalisation. Simple exercises like walking, stretching, or yoga can be done at home or at your local park and require minimal investment.
Many local councils across Australia offer free or low-cost exercise programs specifically designed for seniors, including chair yoga, walking groups, and hydrotherapy. Some of these programs are also available through the Commonwealth Home Support Program. Ask your local council or GP for a referral to an exercise physiologist, which may also be covered through a GP Management Plan under Medicare.
9. Stay Social to Avoid Health Declines
While living independently is a great goal, it can lead to feelings of loneliness and isolation if you don't maintain a network of friends or family near you.
Moreover, if any individual—but in particular a senior—spends too much time alone, it can lead to poor mental health. Loneliness and social isolation are increasingly recognised as serious public health concerns in Australia, with effects comparable to smoking 15 cigarettes a day on overall health outcomes.
Maintaining a social life can prevent feelings of loneliness and depression, which often translate into health problems and increased medical expenses. Participate in community events, join local clubs, or volunteer—many of these activities are free or low-cost. The Support at Home program also funds social support and transport services for eligible seniors, making it easier to stay connected.
10. Embrace Technology for Financial and Healthcare Savings
Technology can help you manage your finances and healthcare more effectively—and at lower cost. Use online banking to track your spending and set up automatic bill payments to avoid late fees. Set up a myGov account linked to Medicare, Centrelink, and the ATO so you can manage your government services, track your super, and receive Age Pension payments all in one place.
Explore telehealth services for GP and specialist consultations—many are covered by Medicare with no out-of-pocket cost, and they remove the need for transport or travel time. The Australian Government has significantly expanded telehealth options for older Australians, making it easier and cheaper to access healthcare from home.
11. Adopt a Financially Positive and Proactive Mindset
Your attitude towards finances can significantly impact your long-term independence. Stay informed about changes to aged care policy, Age Pension rates, and superannuation rules—these change regularly and can affect your entitlements. Services Australia's free Financial Information Service (FIS) runs webinars and one-on-one consultations to help you understand your options at no cost.
Don't hesitate to seek professional advice from a licensed financial adviser when making significant decisions about super, investments, or aged care. The right advice at the right time can make a meaningful difference to how long your money lasts—and how long you can stay in the home you love.
By incorporating these financial tips into your daily routine, you can enhance your ability to stay independent at home, ensuring a comfortable and financially secure future.
