Oct 30, 2019
Key Takeaways
·
Adult children will
play an increasingly critical role in supporting the needs of their aging
parents.
·
Unfortunately, many
who take on caregiving duties are not financially prepared for the role.
·
A financial plan
including life insurance and annuities can help both generations prepare for
the future.
Many American families are already struggling
financially as they attempt to juggle the need to fund their own retirements
while coping with rising costs for healthcare, housing, college education, and
student loan debt. Increasingly, many are also taking on the task of caring for
an aging parent, for which many families are not financially prepared.
A confluence of events — an aging population,
increases in life expectancy, rising healthcare costs, and the declining
availability of both long-term care insurance and employer-provided retiree
health insurance — have all contributed to the dramatic shift in the eldercare
landscape. This has led family members, many of whom are working-age adults, to
shoulder the caregiving responsibilities of their aging parents.
And they are often not financially prepared
for caregiving. A majority of American adults aren’t sure how to pay for their
parents’ eldercare needs, and about half of older Americans have not even
discussed long-term care with their family. Without proper planning, they may
risk their own financial and emotional well-being and long-term financial
security.
|
Family Discussions
about Eldercare
|
||
|
|
How long assets will last in
retirement
|
Desired lifestyle in retirement
|
|
Don't know
|
3%
|
|
|
A great deal
|
13%
|
11%
|
|
Some
|
18%
|
22%
|
|
A little
|
14%
|
21%
|
|
None
|
52%
|
46%
|
Fortunately, there are ways to support
families navigating these challenges. Many financial advisors have gone through
specialized training related to eldercare; they can help families understand
the financial implications and determine how to pay for it. To be as prepared
as possible, adult children need to look past traditional taboos, initiate
conversations with their aging parents about finances, and develop a plan for
handling assistance their parents may require.
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