One of the many wonderful realities that we now have because of longer life spans is that we get to spend more time with our parents. Thanks to medical advancements and increased awareness when it comes to health and wellness, people are living longer than before.
Longevity is a feat that should be celebrated, but along with it comes the lack of preparedness that some might have. Current retirement plans might not be enough to cover the extra years. A good example of this is how people delay buying long term care insurances. When 7 out of 10 people end up needing some form of long term care after their 65th birthday, children would do well to have that “retirement” conversation with their parents as early as now.
What is surprising, however, is that not many families have had this talk despite more and more children beginning to take on the burden of covering the costs. So to act as a guide to hopefully make that conversation smooth and stress-fee, here are a few points you might want to cover:
Coverage for LTC is becoming a top priority because people are now at a higher risk experiencing more unhealthy years.
Old age makes you prone to more illnesses and complications, and treatment for those can be expensive. To give you a better picture of how much out-of-pocket care costs now, you would have to pay up to $80, 300 a year for a semi-private room in a nursing home. The price shoots up to $91, 000 for a private room.
Often parents look to their children for the actual care, but because of the growing demands from today’s world, that might no longer be possible. Because of present-day circumstances, children often end up sacrificing their careers or their health to provide care for their aging parents. In order to avoid that, purchasing an LTCI policy might be worth the dollars.
Outliving your money is very much a reality right now. Your parents may have 401(k) or pension in place, but if they are not careful, those could run out.
This topic might not be an easy one to discuss because some people are wary about sharing how much they have in those plans, but knowing how much funding you are working with is a good start. By being aware of where they are financially, you will be able to plan their future with them better.
Probably one of the most difficult subjects to discuss, families should at least discuss if the parents both have updated wills. It is important that each parent is financially protected should the other one pass away. No one likes to think of a parent dying, but it is a reality. Making sure that the bases are covered earlier will simply necessary actions when the time comes.
It is also important to note that having an updated will is not a task that is simply reserved for the elderly. Children would also do well in understanding why having this is necessary.