As Australia’s population is ageing, a shift is occurring – planning for your own parent’s later years is becoming an ever-increasing reality. By 2060, a quarter of Australia’s population will be over 65. Source: By 2060, Australia’s population likely to reach 42 million, says Productivity Commission paper.
With this growth in the aged population, you may need to consider these options for your own parents.
1. Choice – if your parents’ lose their mental capacity, they may not be in a position to make decisions.
2. Family dynamics – who will take on the responsibility should one or both parents be incapacitated.
3. Tax consequences – If not planned for correctly it may trigger tax consequences which may have been avoided.
4. Estate plans – may be compromised with unexpected costs and can cause conflict at a later time.
5. Retirement plans – may not allow for the costs of aged care and result in financial hardship.
Family discussions are an important element of planning for the later years of your parent’s lives. Some of the questions that may assist in planning include:
1. What are the expectations each of you have in the event your parents’ need help?
2. What are your parent’s expectations for how they would want to handle long term care if it occurred?
3. Do your parents have adequate resources to cover the cost of paid caregivers?
4. Will daily care of a parent impact your own retirement plans?
5. Which of you would be the likely caregiver and why?
This discussion will lead to better planning so that your parents may enjoy the later years of their lives with grace and dignity – whilst avoiding potential family conflict.
If you would like to discuss your parents’ ElderPlan or start a pro active plan, please feel free to contact us or subscribe to one of our online self managed services.