As retirees plan for their next chapter, it’s essential to consider the implications of this stage of life beyond personal financial security. Retirement often involves navigating an empty nest or finding a sense of community and identity outside a long career. Additionally, many retirees face the common situation of caring for aging parents with new financial, medical, and support needs. While aging parents may not require direct financial assistance, accounting for their evolving healthcare and day-to-day needs is an important part of retirement planning.
Considering the sensitive and emotional nature of this role reversal among older parents and adult children, we recommend pre-retirees and retirees have early, honest conversations with their parents to discuss their vision for the future. Topics to cover may include long-term living arrangements, time commitments, and who will be responsible for specific tasks, such as driving to a doctor’s visit or paying bills. This will give you an initial idea of how to budget your time and money for direct financial assistance and outsourced services, if necessary.
Explore the video below for critical conversation starters and key planning areas to help ensure your parents can age with dignity and support. You can also review our checklist, which covers these essential topics: What Issues Should I Consider for My Aging Parents?
A Case Study on Supporting Aging Parents
Here is a hypothetical case study which illustrates how caring for aging parents can be a big part of a retiree’s financial picture: David is a retiree living in California. David’s mother, Brenda, lives out of state, is single, and relies primarily on Social Security for income. David provides $1,000 in monthly financial assistance to Brenda, but because of the distance, David’s ability to offer direct, personal support is limited. Issues David should consider include the following:
- David should explore engaging outsourced services and community programs for important tasks, such as shopping for essentials and transportation to medical appointments. David already found a particularly valuable solution in creating a family Instacart account, allowing him and his mother to access online grocery delivery for food and toiletries.
- David needs to budget for the financial assistance he regularly offers, as well as expenses for outsourced services to support Brenda’s daily life. David and Brenda agreed he should manage her budget and handle her bills to ensure timely and accurate payments.
- David’s budget should include additional savings for unexpected medical events, care, or treatment, such as nursing services and long-term living assistance. He may also want to explore strategies such as a reverse mortgage to fund other living arrangements, if necessary.
At Blankinship & Foster, our thoughtful, thorough approach to financial planning considers every facet of our clients’ lives, including the often overlooked implications of different phases of life and the financial solutions needed to smoothly manage transitions. While retirees may not have children at home to support, caring for aging parents is increasingly common. Contact us to learn how we can help you plan for the financial, physical, and emotional support your parents may need, so you can stay focused on enjoying your retirement.
Download our free resource, The Essential Guide to Retirement Planning.