Helping An Elderly Parent Financially

Maintaining financial control of one’s life as one ages may prove quite challenging. As people get older, their health may begin to deteriorate, leaving them less able to stay on top of their finances or maintain certain lifestyle habits like driving or cooking dinner every night. As their children, we must help them remain financially secure as they age and continue living independently. With that in mind, here are some steps to ensure your aging parents remain financially stable well into the future.

Assessing The Situation

There’s no way around it. Aging parents are expensive, and they won’t be around forever. One of the best ways to help an elderly parent is by assisting them financially with whatever they may need -from a new roof on their house to heating oil in the winter or transportation costs to visit their other children or grandchildren. These are some of the most common things families can help with when helping aging parents financially. Another option would be financial advice. You should talk to your aging parent’s financial advisor about their current plan and what you can do going forward. Some potential plans include making monthly contributions toward annuities, transferring cash from savings to checking account balances, delaying Social Security benefits beyond the minimum starting age of 62 years old, or adding your loved one as a joint tenant for the property you jointly own with them. If you’re unsure how to get started, call us now!

Budgeting for The New Expenses

Having a parent turn 65 is a huge change in their life and the way they deal with money. In order to help them, there are some things you can do. If they are financially savvy, set up automatic transfers between your account and theirs so that they always have enough to pay their bills. If they are not financially savvy, it’s time to consult an aging parents’ financial advisor. The advisor can work with them one-on-one to create and maintain a budget that will be easy for them to follow. This allows you to be more hands-off in the situation while still helping out where needed. It is important to know when to step in and when to back off. Being too involved could come across as overbearing or meddlesome, which could cause arguments or resentment. Supporting aging parents financially means working with them and their current state of finances without interfering too much in the process but being ready when help is needed.

Work Out A Payment Plan

The best way to ensure that your parent is taken care of is to work out a payment plan with the parent care agency. In many cases, the agency will have a sliding scale for payments depending on how much you can afford. The best thing to do is contact them and talk about it- they’ll be able to help you figure out what’s best for everyone involved. You might even want to take advantage of some of their resources, such as visiting nurses or in-home care, if it looks like someone needs more help than just financial assistance. It’s not always easy supporting aging parents financially, but there are always the best possible ways you can make it easier for both parties.

Start Saving For Their Future

When an elderly parent asks for help, it can be hard to say no and instead find a way to help them financially. Helping aging parents financially starts with saving for their future. One of the best things you can do for your aging parent starts a retirement account that they can’t touch until after age 65. Your advisor will take care of all the paperwork, so there’s no need to worry about meeting deadlines or losing out on tax benefits. Another good idea is providing a financial cushion in case they are faced with health-related expenses or another emergency while they’re living on their own

Other Money-Saving Tips

It may seem difficult to help aging parents financially, but if you look carefully some ways can be done. Donate unused items or clothes in good condition and use the proceeds to buy them a new set of clothes. Take up a part-time job with flexible hours so that you can schedule time off from work when they need you. Help keep their space clean and tidy and stay engaged in their lives. Lastly, encourage them to give more to charity to have some financial security for their future needs.

End On A Positive Note

You’ve spent your whole life supporting your parents, and now they are aging, but their needs are greater than ever. You want to help them out financially, but you’re worried about hurting their pride and/or compromising their independence. Consider the above steps to keep the things positive. 

If you are fortunate enough to have the opportunity to support aging parents financially, it’s important that you take that chance. It can go a long way in easing their worries and making them feel loved and supported.