Most older Australians are in the dark about the financial implications of moving into aged care and do not have a firm grasp on the government assistance available to them.
Four in five retirees feel unprepared about the transition to aged care, an AMP survey finds.
Seven in 10 worry about the cost of care and a third are concerned about the cost to their children.
The AMP group executive of super and investments, Melinda Howes, said the findings aligned with common queries put to financial advisers about the cost of the service and what to do with the family home and other assets.
"More affordable and accessible financial advice is central to building this confidence, and in helping demystify the nuances and complexities of our retirement system, including how the aged care system interacts with the pension and family home," she said.
Earlier research by the financial services firm found many Australian retirees were fearful their savings would run out.
Worries about the state of their finances was chilling conversations with their children about intergenerational wealth transfer, despite many older Australians keen to help their offspring into home ownership.
Sweeping reforms to the aged care sector are expected to be enshrined into legislation this week after passing the Senate.
The changes will improve conditions and protections for people residing in aged care facilities and help Australians live at home for longer.
AMP's survey found half of older Australians would prefer to receive care in the home.
The government expects to deliver 107,000 home care packages over the next two years and has front-loaded places to cut wait times.
Aged Care Minister Anika Wells said the number of Australians in home care had increased fourfold in the past 10 years.
"Which is why the Albanese government is investing $4.3 billion in a new system of home care - Support at Home," she said.
"We also recognise the need to act urgently, and that's why we are front-loading our 300,000 package commitment."