The stats can be a little confronting. Over 4 million Australians live with a disability, meaning most families either have a family member with a disability or know of a family that do. Of those families that do, they have also been found to have a significantly lower standard of living, than those without.

In fact, the Australian Bureau of Statistics found a disabled adult would need to increase their disposable income by 50% to achieve the same standard of living as someone living without a disability. 

The following case study outlines how seeking financial advice could help achieve a better financial outcome, not only for your loved one, but for the entire family.

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Case study: A car accident

Jen and Warren* are both aged 60 and have a 15 year old son Reece. While driving home from work, Jen was involved in a car accident that left her permanently disabled. Jen was unable to return to work, which dramatically impacted the family income. There were also expenses related to home and car modifications to make Jen more comfortable. 

Jen and Warren engaged a financial adviser to help explore their financial options. Their adviser reviewed their situation and helped in the following key areas: 

• Superannuation - Jen held Total and Permanent Disability (TPD) cover of $400,000 within her super account. Their adviser helped Jen claim on that policy.
• Insurance - As Warren is now the sole income earner and likely the major care giver, it is important to ensure that if something happened to him, they would continue to receive an income similar to what he is currently earning or if he was to pass away, there would be enough funds to continue looking after Jen now and in the future.
• Tax-effective withdrawal of insurance claim - Their adviser also advised on a tax-effective withdrawal of Jen's $400,000 superannuation balance to assist in paying for Reece's school fees, home and car modifications, and ongoing rehabilitation costs. 
• Services Australia – Assisted in applying for government payment services for Jen.
• Investment – Their adviser provided investment advice to help generate regular income from the balance of funds to offset some of Jen's lost income. 
• Estate planning – Worked with the family's lawyer to update their estate planning structure (Wills, Powers of Attorneys, Guardianship for Reece, special disability trust, etc.)
• Retirement planning - Warren wanted to bring forward his retirement plan to spend more time with Jen. Their adviser provided a range of financial projections to help determine the best solution.

Why it’s important to seek financial advice

The additional financial cost living with a disability can place on an individual, along with their immediate family, means it is imperative to thoroughly explore every possible financial and government support option available.

To explore how to set your loved ones up for the future,speak with a financial adviser today for a tailored financial plan. 

We’re here to help

The team of dedicated financial planning experts at TelstraSuper Financial Planning can help you or a loved one navigate the costs of living with a disability. To speak with an adviser, call 1300 033 066 or request a call back.  Fees apply.

* Not a real person. This case study is intended to illustrate how financial planning could help in a similar situation.
Source: Disability, Ageing and Carers, Australia: Summary of Findings, 2018 | Australian Bureau of Statistics (abs.gov.au)