Did you realize that 40 million adult children, 10 million of which are millennials, serve as caregivers for elderly family members? Or that 70% of Americans 65 and over will require long term care of some sort? If this isn’t you (yet) chances are great it will be soon.
If you choose to become a caregiver to your aging parent (or have no other option), here are a few ways to manage their care and expenses while looking out for your own long-term financial security (and mental and physical health).
- Find out if there is a long-term care insurance policy, which may provide financial assistance for certain care services.
- Check to see if there are any government programs that your parent is eligible for, such as Medicaid, veteran’s, or disability benefits.
- Look at your parents’ expenses (as well as your own) and determine if there are simple cost-cutting opportunities such as a less expensive cable package or fewer meals out. Do anything you can to avoid dipping into your own retirement savings.
- Enlist the help of siblings or other family members, both financially and time-wise. No one person can care for another full-time with no breaks.
- Consider if it might be more cost-effective to hire a home care worker to assist your parent so that you can continue to work or can at least take less time off.
- Make a strong attempt to not dip into your personal savings to make ends meet. It can be depleted faster than you think.
We strongly encourage adult children to have a frank discussion with their parents about their long-term living situation and their potential care needs down the road.
At Sound Financial we have advisors who can help you and your family with Long Term Care insurance. We would love the opportunity to meet with you talk about potential tax benefits and to determine the best way we can serve you and your family. Because let’s face it, the need for long term care affects the entire family.