The Real Cost of Caring
Dealing with the financial stressors of caring for an aging loved one can affect your ability to provide them with the care and compassion they need. Failing to manage these stressors correctly can put the security of your own financial future at risk. To mitigate these risks, consider these tips to help you make informed decisions about how to protect your future retirement plans while adequately caring for your loved ones.
Don’t Leave Your Job
Many adult children end up putting their professional lives on hold to become the primary caregiver for their elderly parents. Financial experts advise against this because of the sudden loss of income and valuable benefits. Consider home-based caregiving options that support your ability to maintain your earning potential.
Create a Budget
Calculate the actual costs of being a primary caregiver before making any drastic changes like leaving your job. Also consider whether your loved one’s assets can be utilized to cover some of the costs involved in providing care inside or outside the home. Geriatric care managers can help you establish a caregiving plan that meets your needs, and assist in identifying resources to save both time and money.
Look for Benefits Elsewhere
Free or low-cost benefits that can help cover some of the costs of caregiving, such as home health aides, are often available to seniors. Similarly, review the limitations of public benefit options such as Medicare and Medicaid.
Consider Relocating Your Parent
It is common for seniors to prioritize remaining in their own homes while they age. While understandable, this request can be a very expensive, and often unrealistic option. If opening your home to your loved one is an option, it can be far less expensive.
Protect Your Parent from Scams
Financial elder abuse is an unfortunately common event, so make sure their finances are protected. Telephone, postal mail, and internet fraud can be easily avoided when a trusted relative or friend is keeping tabs on the accounts of a senior loved one. Consider talking with your parents about stepping down as Trustee of their trusts and letting you step in to monitor their finances. If they do not have a Trust holding title to their accounts, meet with me to look at whether it makes sense to set that up.