Senior Finances: Help Prepare for Future Needs Now
The good news is we’re now living longer than ever before, with upwards of one in three older adults living until age 90 and beyond. The bad news, however, is that retirement planning for today’s seniors often didn’t take into consideration such longevity, leading to a strain on senior finances in later years.
So, what happens if your parents outlive their financial resources? As part of the sandwich generation, making their own retirement plans while still covering expenses for your own children, you may find yourself in need of supporting your aging parents as well. As a matter of fact, a recent survey by AgeUp shows that:
- Nearly three out of four participants believe that at least one of their parents will live longer than average
- More than half of participants have at least one family member who lived to age 95 or older
- 64% of participants are anticipating the need to provide the financial means necessary to support their aging parents
According to Blair Baldwin, AgeUp’s founder and general manager, this indicates that “while many adult children recognize the role they will likely play, most are still financially underprepared for it.”
It’s crucial for families to plan now for future financial needs. These recommendations can help:
- Have a conversation with your aging parents about their wishes related to care, ideally before the need for care arises. Then determine the approximate costs for the type of care they desire.
- Compile your parents’ current financial information, including all assets and expenses, as well as all applicable documentation: retirement income and pensions, Social Security payments, long-term care insurance policies, value of the home and other assets, etc.
- Include your brothers and sisters and, if appropriate, any other family members in the decision-making process, and figure out if any or all are able and willing to chip in towards care costs if needed.
Although financial planning can be a challenging conversation to bring up with your parents, a little advance planning can go a long way towards meeting future care needs. For further talking points to cover with your aging parents, along with a wide range of additional resources related to aging care, contact Hired Hands Homecare.
As an award-winning provider of senior care in Walnut Creek, CA and the neighboring areas, we’re here to help you in a variety of ways to make caring for senior parents at home easier. Let us partner with you to fill in the gaps in care that allow you to take the time away you need to work on future financial plans. We’ll ensure high quality senior care and a better life balance for you as well. Call us at (866) 940-4343 to learn more.