For self-funded retirees, Support at Home can offer substantial savings, with government funding ranging from about $11,000 to $78,000 a year, depending on your assessed needs. But the value of that funding depends on how you use it – understanding where the savings are, and where they aren’t.

It’s tempting to look at the contribution rates and assume that paying 50 per cent or 80 per cent of a service must be cheaper than paying for it privately. But there’s a simple question you should always ask when someone gives you a percentage: per cent of what?

Support at Home divides services into three categories, each with different contribution rates. Clinical care, including nursing and allied health services, attracts no co-contribution regardless of your income or assets.

Whether you’re a full pensioner or a self-funded retiree, your contribution is zero. For self-funded retirees, this can make Support at Home particularly valuable. Take a physiotherapy session costing $200. Pay privately and you pay the full $200, although private health insurance may cover some of the cost. Through Support at Home your contribution is $0.

The second category is independence services, which includes personal care such as showering and dressing, transport and social support. Self-funded retirees can pay up to 50 per cent. At first glance, paying half sounds like a bargain. But it is half of the Support at Home price – not necessarily half of what you would pay privately, and there is often a minimum service time.

For example, a private provider might charge $65 for 30 minutes of personal care. A Support at Home provider might charge $100 an hour, meaning your 50 per cent contribution is $50 an hour. That looks cheaper until you discover there’s a two-hour minimum visit, making your contribution $100.

Shop for the care you need, when you want it, then compare your contribution with the cost of buying the same service privately.

The third category is everyday living services like cleaning, gardening and shopping assistance. These attract the highest co-contribution, with self-funded retirees paying up to 80 per cent.

For cleaning, a Support at Home provider may charge $105 an hour, with an 80 per cent contribution that means you pay $84 an hour. A private cleaner might charge about $50 an hour; the government-funded service actually costs you more.

Don’t compare provider price lists or hourly rates on My Aged Care. Rates for services outside standard hours can vary widely, and minimum visit times can quickly turn a lower hourly rate into a higher overall cost. Shop for the care you need, when you want it, then compare your Support at Home contribution with the cost of buying the same service privately.

Many home-care providers offer private services. There are also specialist private-care businesses and platforms such as Mable that can help you arrange your own carers.

If you are a self-funded retiree looking at Support at Home, don’t focus on the funding or the contribution rate – focus on what you will actually pay.

Support at Home can offer excellent value, particularly for clinical care, but paying 50 or 80 per cent doesn’t automatically make a service cheaper. Ask what you’re really getting out of it, then crunch the numbers.

Rachel Lane is the author of Downsizing Made Simple, a book and website aimed at demystifying downsizing.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.