Caring for elderly parents

Helping aging parents can be one of the most meaningful ways to give back. It can also raise questions about care, finances and family responsibilities. A comprehensive plan can help you understand your parents’ wishes, prepare for potential costs and stay focused on your own financial goals, including your retirement savings strategy.

Start with a plan

Planning ahead can make it easier to support your parents while protecting the progress you are making toward your own goals. Start by thinking about:

• What they may need now
• What they may want later
• Who should be involved in future decisions

Talk it through together

Money and care decisions can feel personal, so it may help to begin with what matters most to your parents. You might share that you are reviewing your own retirement plans and ask how they approached planning for the future. This can open the door to learning more about their preferences, savings, insurance and support system.

Consider asking questions such as:

• What is most important to you as you think about the years ahead?
• Do you have long-term care insurance or other coverage that may help with care costs?
• Who would you like involved in financial, medical or legal decisions?

Gather important information

Once the conversation has started, work together to create a clear picture of your parents’ finances and benefits. This may include:

• Income sources
• Retirement accounts
• Insurance policies
• Medical coverage
• Estate documents
• Contact information for trusted professionals

It may also be helpful to review whether key documents are current, including:

• A will
• Financial power of attorney
• Healthcare proxy
• Advance directive

Having information organized can help family members respond more smoothly if additional support is needed.
 

Explore care options

Care needs can change over time, so it can be useful to understand the range of options. Some families start with help at home, while others may consider adult day programs, assisted living, memory care or skilled nursing care depending on health needs, preferences and available resources.

Costs can vary widely by location, type of care and level of support. Local costs and your parents’ care needs will help shape the amount to plan for.

Understand ways to pay for care

Families often use more than one resource to help cover long-term care expenses, such as:

• Personal savings
• Retirement income
• Social Security
• Pensions
• Long-term care insurance
• Home equity or other assets

Each option has financial and tax considerations, so it can be helpful to speak with a qualified professional before making decisions.
 

Review Medicare, Medicaid and veteran benefits

Medicare generally does not pay for long-term care when the care is primarily to help with everyday personal tasks. It may cover certain medical services or short-term skilled nursing care when eligibility requirements are met. Medicaid may help cover long-term care for people who meet their state’s income, asset and care requirements.

If your parent is a U.S. veteran, they may be eligible for long-term care services through the Department of Veterans Affairs. A VA social worker or local VA medical center can help explain available options and eligibility requirements.

Keep your own goals in view

Supporting your parents can be an important part of caring for your family. At the same time, it is worth keeping your own financial picture in mind. Staying connected to your retirement savings strategy, emergency savings and other goals may help you feel more confident as you balance today’s responsibilities with your future plans.