Dealing with ageing parents is one of life’s biggest challenges. The dynamic between adult children and their parents shifts as parents become more dependent. This role reversal can be emotionally challenging for both parties.
Most of the time, change takes place so gradually that you barely notice it. But sudden health declines or emergencies can catch family members off guard. Some families can find themselves totally unprepared.
That’s why it’s sensible to plan in advance for the inevitable practical and financial consequences. Here are some key issues you need to think about.
Healthcare costs
As your parents' health declines, healthcare costs are likely to increase. This could include medical bills, prescription medications and long-term care expenses. Investigate the cover provided by any health insurance policies they may have. Also, explore any additional help with healthcare costs they may be eligible for through the National Health Service.
Home adaptations
Depending on how frail they are, your parents' home might need modifications to ensure their safety and accessibility. This could include installing ramps, grab bars, wider doorways, and other adjustments. These modifications can incur costs. Again, your parents may be eligible for help paying for modifications through the NHS.
Care in the home
If your parents need help with daily activities like cooking, cleaning, and personal care, you could hirein-home care services. The UK’s largest homecare providers isHome Instead, but you’ll find details of all your local providers on thehomecare.co.uk website. Homecare typically costs around £20 an hour. Depending on the number of visits required, it can be expensive, and the government-funded options available are limited. But it’s generally much cheaper than paying for a care home.
Care facilities
Homecare visits may suffice for several years. But if your parents' health deteriorates significantly, they might eventually need to move to an assisted living facility, care home or nursing home. These facilities come with large costs, so research the options in your area and plan for potential expenses. Homes are inspected by the Care Quality Commission, and, before choosing a home, you should check the CQC website for details of its latest inspection.
Power of attorney
A crucial factor to consider with ageing parents is the possibility, indeed the likelihood, that there will come a time when they are no longer able to make decisions for themselves. It is therefore advisable to have a lasting power of attorney, or LPA, in place, long before the time comes. There are two types of LPA, a property and financial affairs LPA, and a health and welfare LPA. Both types of LPA need to be registered before they can be used. You can download forms from the GOV.UK website.
Seek professional advice
As we’ve seen, there are financial aspects to all of these issues, and for that reason it makes perfect sense to consult a financial planner. Even if they haven’t used a planner in the past, it will pay for them to use one now.
A planner can help you and your parents to see the bigger picture and ensure there aren’t any factors you haven’t overlooked.
For example:
Do your parents have a will in place?
What are their sources of retirement income?
Does their investment portfolio need reviewing to reflect their changing circumstances?
Are they earning an appropriate level of interest on their savings?
How much money should they be putting aside in case they need long-term care?
What are their plans regarding estate planning and inheritance?
Remember, too, that caring for ageing parents can have a huge impact onyour own finances. For example, you may have to reduce work hours or take time off to provide care. So you need to assess your own financial situation and make any necessary adjustments to ensure your financial stability. Again, the help and support a financial planner can provide is extremely valuable.
Every family is unique
One more thing: there are no simple answers to the problems arising from ageing parents. Every parent’s, and every family’s, case is different, so it’s crucial to assess their specific needs, resources and preferences when making plans and provisions.
Also, if you have siblings, bear in mind that they might have different ideas to your own on what is best for your parents and the wider family. Open communication from the outset can help to head off, or at least to mitigate, potential disagreements.
AGEING PARENTS?
Are you making plans for ageing parents? Or are you planning for your own future and paying for potential long-term care? Would you like to speak to us about the financial implications? Thengive us a call or send us a message. We are here to help you.
