Ageing parents – A time for change.

These days, people live longer and fuller lives than ever before. Our parents and relatives hopefully have long and fulfilling post-retirement years to look forward to.

Everyone’s circumstances are different and your loved ones will have their own ideas about the best way to manage the transition from self-care to requiring some level of help. It may be the case that one family member is capable of staying in their home while another requires more support. Initiating this vital conversation with your elderly parents, while they are still able to make sound decisions about their future care, will enable them to have meaningful input on what happens next.

How financial advice helped

In today’s post,  we look at a case study where Liz, a high school teacher and daughter of healthy 84 year old parents, had not worried much about aged care until the last few years. After chatting to a friend about her experiences, Liz was persuaded to take her parents to go and see a financial adviser abut their ‘next steps’, and whatever they might be. That turned out well, and they settled on a two-stage plan.

Twelve months later Liz’s parents, Alex and Gloria, had take the first step and relocated to a retirement village after 45 years on their seven acre property. They were advised that the money from their property sale might mean a drop in the part pension they received from Centrelink, so they were well prepared for that. The benefit of selling up was they could implement stage two in their plan. Alex and Gloria used the funds from the sale to re-arrange their investments and build a more secure base for their future income.

‘When dad first retired they were doing OK. Interest rates were higher 25 years ago and they were comfortable. But as interest rates dropped it had become more of a challenge for them,” says Liz.

Her parents are settled now and still quite independent. Liz and her siblings provide more help these days, with the small garden, shopping, transport to appointments, and paperwork. She says the next turning point will come if one of them becomes ill or is injured. The good news is, should this occur, they’ve got a plan in place to fund the costs of going in to an aged care facility.

Explore your options with the help of an expert

Navigating your way through the many emotional and financial issues when discussing life changes can be challenging. But it is much easier for everyone to be on the same page once you understand the options.

Speaking with us, whether by yourself or with your relative(s), can hep you view the financial options and put plans in place. At a time when emotions can be running high, guidance from an expert can help provide unity and focus on what’s financially important so decisions can be made.

Together, we’ll work through considerations like super, assets, debts, Age Pension entitlements, and more. For example, if residential care is required, financial decisions such as how a resident pays an accommodation bond or other charges can have a significant impact on pensions, aged care fees and tax.

A little planning can go a long way to help give you and your loved ones peace of mind.  We can help you work through the many options with your family to create a plan that prepares you all for this important transition in life.

Regards,

Perth Aged Care Financial Planners