Despite government innovations and the help of superannuation, it is reality that a lot of care for our aging population is falling on the shoulders of adult children. And it’s no small burden, emotionally and financially. Caring for an elderly loved-one is a huge responsibility, and one that comes with a lot of financial decisions and strains. Here are some thoughts, inspired by MSN Money and Sydney Morning Herald, about how best to prepare and navigate caring for the elderly.
Have A Game Plan
No one likes to think about our parents getting older. It’s a heartwrenching time, but a lot of the strain and heartache can be taken out of the equation should you be prepared. What do your parents want for their care plan? How are they set up financially to deal with the high costs of aged care? Are the appropriate legal vehicles- such as power of attorney and guardianship- set up and agreed upon by the whole family?
Assess Your Options
Once everyone is clear on where you and the finances stand, you’re more capable of looking at possible options for care. There is the option of a reverse mortgage, which could allow your elderly parents to stay in their own home for a longer period of time. Certainly consult with a trusted financial advisor before signing up. Then there are options of in-home care. If your loved-one is in pretty good shape, perhaps all they need is someone to help out with the cleaning, cooking or driving them to weekly bingo. An assessment of their house, and how to make it more accessible for the elderly (lighting, handle rails in the bath, large text options on the telly etc) can all ensure that an aged care facility can be delayed for a long period of time.
Aged Care Options
If your loved one is no longer able to live in the home, you have a couple of options. Some people take on full-time responsibility, and move their relatives to their own home. There are also options for a residential facility, where able people can live in a care facility but have their own little flat or room and relative independence, with a strong care content. Then there are nursing home options, for people who require far more care. Before any decision is made, you’ll need to get an ACAT (Aged Care Assessment Team) form, and start discussions with your preferred care facilities, especially discussions about what kind of bond each facility would require.
Government Issues
The tax associated with selling a home, the implications for the pension and Centrelink, the possible assistance for full-time carers all have significant financial implications. Introductory information can be found at the Department of Aging website, but it’s worth scheduling a meeting both with Centrelink and a financial advisor to properly organise the financial side of caring for an elderly relative.
Understand The Cost
It’s important to share the responsibility of caring for elderly parents as much as is possible. Families seem to find it easier if one person manages the finances, but perhaps the bulk of the logistical decisions could be handled by another member of the family. Maybe a roster for visiting, or taking the loved one out for It’s important that the cost of care be fully appreciated; care not only requires a financial outlay in terms of nursing homes and residential care, it also has a financial cost with regards to the carer’s productivity, their ability to concentrate on their career, and their time resources. In preparing for the job of a carer, it’s essential that your own finances remain solid and your ability to maintain connection to a career isn’t undermined, as much as is possible.
