If your parents are getting older, there may come a time when they need help to manage their finances. Even if your parents are currently able to independently manage their finances, they may reach a point at which they are no longer able to do so. Many elderly adults who have financial trouble later in life hesitate to reach out to their family members for assistance, and they may not even let them know that they are having trouble. While most adult children want to help their parents, 60 percent of elderly adults do not tell their children when they are having financial difficulties.
According to Investopedia, an average of 10,000 adults retire each day. Of those retirees, 24 percent do not have any savings, and 54 percent having savings that are insufficient. If your parents are growing older, you may benefit by talking to the team at Elder Care Direction. We can help you and your parents to plan for when they might become incapacitated so that you can help them if your help is needed.
At what point will you need to help your parents with their finances?
It may be difficult for you to know when you might need to begin helping your parents with their finances, especially since they might be reluctant to tell you when they are having trouble. Because of advances in the medical field, more people are living longer. However, because of the increased number of years that people are living, there is a heightened risk of developing Alzheimer’s disease and dementia. One of the first indications that people are suffering mental declines is trouble with managing finances.
In people who are completely healthy, the ability to make good financial choices peaks by the time they reach age 53. Elderly people are also frequently targeted by scammers. One out of every five people has suffered financial abuse with an average of $36,000 in losses. Considering all of this, you may want to begin helping your parents when they are over age 75, in financial need or suffering mental declines.
How you can help
When you begin trying to help your elderly loved one with his or her finances, there are several steps that you should take. You should begin by considering everyone in your family and create a plan for your collective finances. Your plan should include the anticipated financial futures of each person, including the support that they might be able to offer and their own financial needs when they grow older.
You should next identify all of the professionals, friends and family members that you trust with the financial future of your parents. Tell them about the situation and try to get advice as soon as you can.
You should then make certain that your parents have all of the following in place:
- Wills and living wills that you know of their locations
- All financial and insurance information that are organized
- Copies of all other important paperwork
You should then draft an emergency plan that addresses what you will do if your parents become ill or if you or your siblings do. Your plan should include what should happen if any contingency occurs.
For many Americans, being financially independent is unattainable. Being realistic about the situation does not mean that a disaster will occur. When you create a plan to help your parents, you can help them to build a more enjoyable financial future so that your family can withstand difficulties. Contact the team at Elder Care Direction today or complete our contact form so that we can help you.