We spoke with Financial Advisor Mel Lever, who is also a person living with MS, to get a few tips on managing your finances while living with a chronic condition.
I think it’s important for everyone to understand their personal financial situation.
Given the overwhelm that can come with the initial diagnosis though, it may not something that needs to happen immediately. But, if applicable, just knowing that there are options available may offer peace of mind.
Once the head is a little clearer, treatment decisions have been made & there’s less on your mind, it’s definitely worth reviewing the overall situation.
A common pitfall not just for pwMS, as I believe it applies much more broadly, is not having emergency funds.
Given the unpredictability of MS, having a pool of funds (ideally 6-12 months of living expenses) available to cover expenses in the event of extended time off work or unexpected expenses can provide a level of comfort that expenses can continue to be met.
While we’re fortunate in Australia to have things like sick leave, NDIS & access to Centrelink, sick leave is generally limited and Centrelink/NDIS can be hard to access & isn’t immediate so there can be a shortfall in the funds available to meet expenses/needs.
PwMS/chronic illnesses often face a few common financial challenges. One of the biggest pitfalls is underestimating how much you’ll spend on healthcare. Even with Medicare and the PBS, those regular out-of-pocket costs for medication, therapies, and doctors can add up over time. Another issue is not claiming government support that you’re entitled to. Programs like the National Disability Insurance Scheme (NDIS) can help a lot, but many people either don’t apply early enough or don’t realise they can benefit from it.
Making knee jerk reactions. Research shows that decision making is affected by traumatic events (which I feel an MS diagnosis definitely is!) so it is important to take the time to properly consider the situation, explore options, possible changes and the impact of these before making any big decisions.
Definitely speak with their employer to see if modifications can be made to their role/environment that could make work more manageable.
Depending on level of disability/the impact that MS is having on the individual, are they able to reskill to find employment that is more suited to their abilities (I’m very aware that MS fatigue may make this difficult!). If they currently have a manual role, are they able to move into a more supervisory or teaching/education role?
Review existing personal insurance cover, if held. Many people may not be aware of default covers that they may hold in their superannuation account. While they may not have a need/qualify to access this immediately, it can provide the pwMS with the comfort that they may be able to claim in the future if their condition worsens.
It is also good to know if any covers are held, as getting cover post-diagnosis is going to be much more difficult & is likely to exclude anything related to the MS – if cover is offered at all. If insurance is held within superannuation, even if the client is not yet able to claim, it is good to be aware of so they don’t transfer out of their current fund & lose any cover held.
As mentioned above, building an emergency fund to provide for unexpected expenses, taking leave, reduce working hours if required.
Contributing to your superannuation while you are still able to work, and consider making voluntary contributions. These funds will become essential if you’re unable to continue working until retirement age.
The progression of MS can lead to increased care needs over time. Ensure that you’re financially prepared for the possibility of needing in-home support, modifications to your living environment, or more intensive care.
Reviewing your life insurance, TPD insurance (often available through your super fund), and income protection insurance is essential.
Review private health insurance (I’m not licenced to provide private health insurance advice; these are just things to consider). Medicare provides access to public healthcare & although we have some great public options, it’s important to consider whether they need private health insurance for additional coverage, such as better hospital care or access to specialists. It’s also important to ensure private health insurance is adequate and covers what may be needed in the future, such as rehab services or mobility aids. There can be a wait for services for up to 12 months, so ideally getting appropriate covers sooner rather than later can mean accessing services when needed – costs and affordability permitting. Other therapies such as physio or occupational therapy may also be covered by existing private health insurance, or this may be something that the pwMS would like to consider having for therapist that may increase their quality of life
One area many people overlook is estate planning (again not licenced here, you’d need to meet with a solicitor, but worth considering). It’s worth sitting down with a solicitor to make sure your will, power of attorney, and any advance healthcare directives are up to date. You never know when you might need them, and they can provide clarity for your loved ones down the road.
It depends on the client’s situation as to what services they may benefit from and there are different providers depending on needs. If someone is looking to make investments or plan for their financial future, a financial adviser would be the right choice. If they're facing financial hardship, a financial counsellor can provide free support and guidance.
Financial advisers and financial counsellors offer different services, and their roles cater to different financial needs. Financial advisers help with growing wealth and making long-term financial decisions, while financial counsellors help with managing and alleviating financial stress due to debts or crises.
Financial advisers provide tailored advice on investments, retirement planning, superannuation, insurance, wealth management and tax planning. Typically, these service benefits individuals looking to plan for their future by growing wealth, setting up/reviewing investments, or managing their finances for future goals.
Financial advisers must be licensed under the Australian Securities and Investments Commission (ASIC) and meet specific educational and professional standards and they generally charge a fee for their services.
Common services
Financial counsellors can assist people in financial difficulty, helping them navigate debt, credit issues and hardship situations. Their services are typically for individuals experiencing financial hardship, like debt problems, inability to pay bills, or other financial crises.
Financial counsellors do not provide investment or financial advice. They are not regulated by ASIC but adhere to strict ethical guidelines and must have relevant qualifications (such as a Diploma in Financial Counselling).
Their services are free and financial counsellors often work for non-profit organisations, charities, or government agencies.
Common services
Disclaimer: Any advice or information in this publication is of a general nature only and has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your personal objectives, financial situation and needs.
For more tips and advice, visit our Your financial wellbeing page