The most important thing we always want to do in adulthood is take care of our parents. Thinking back to their love and sacrifices makes being there for them in their old age a no-brainer! It’s even easier when your parents have savings and plans for their golden years. But how do you financially prepare for your parents’ late retirement when they aren’t in the best financial position? Here are a few ways.
1. Understand Their Financial Position
Some online users agree that approaching parents about their finances is not the most accessible conversation. Nonetheless, it’s one to have when getting close to retirement. Inquire about their financial position to understand the help that they’ll need. Put any judgemental feelings aside, especially if you find out that your parents don’t have any substantial savings.
2. Budget To Determine Expenses
It’s best to calculate the amount of money your parents will require monthly, so you’ll know what to expect. Talking about finances is also a great time to reduce unnecessary expenses like magazines, vacations, dining out, or expensive recreation. Your parents can still enjoy these things but may not be able to do them as frequently as they once did when they were in a better financial situation.
3. Consider Low-Cost Senior Living Homes
These homes will ensure your parents are cared for while they remain independent. It offers custom care for older people while reducing stress and forging emotional connections. Your parents will feel supported while thriving amongst like-minded individuals. A user advised, “This worked for my grandmother, who only received survivor benefits from my grandfather.”
4. Sign Up for Social Security
A social security check is handy when seniors reduce their working hours or stop working altogether. It doesn’t replace their entire income, but it goes a long way in providing money to help meet expenses. The amount depends on how much you earn during your career. It’s a reliable way to help your parents get by during their late retirement.
5. Consider Medicaid Eligibility
Medicaid covers the medical needs of older people. This federal program will make it easy for your parents to receive food and healthcare as they age. With old age coming with the need for constant checkups and medical appointments, Medicaid is an essential tool in your arsenal. Knowing your parents will be well cared for should they fall sick will comfort you.
6. Look Into All Applicable Government Benefits
Helping your parents find ways to maximize their retirement will put them at ease. Looking into government assistance is one way to do so. You may be surprised that they are eligible for several aging benefits. Use the National Council on Aging’s Benefits Checkup Website as a starting point. It will highlight the benefits your parents are eligible for depending on their age and income quota.
7. Consult a Financial Advisor
An online financial expert recommended working with financial professionals as the best way to set up your parents for late retirement. They will examine their financial situation while considering investments and eliminating unnecessary risks. They will also draw up a financial plan that will help your parents get by in the future.
8. Bring up Conversations About End-Of-Life Care
The end of life is one of the most challenging conversations you’ll ever have with your parents, yet it is inevitable. As you discuss retirement plans, take advantage of the time to bring up projects for end-of-life care. Take their wishes under consideration and adhere to them when the home comes.
9. Take Stock of All Assets
We always want to protect critical assets. However, encouraging your parents to sell unused assets may be the best way to do it during late retirement. This way, selling their vacation home means retirement savings in the bank. Examining all assets also makes it possible to retain significant investments and offload your portfolio of the things that didn’t matter.
10. Don’t Derail Your Plans and Goals
Granted, taking care of our aging parents is a huge responsibility. But this doesn’t mean you should forget your own goals, hopes, and dreams. Users who participated in this online discussion felt that this was their most significant responsibility in life, which is on top of raising their children. As hard as it may be, don’t over-commit if it means falling behind in life, going into debt, and not contributing to your retirement accounts. While you may want to help your parents regardless, focus on connecting them with resources to help them get by and unburden you from the responsibility.
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This article was initially published and syndicated by The Cents of Money.