Last week in the first installment of our series, The Importance of Planning for the Future Care of an Aging Loved One, you learned that most families put off the financial planning of their aging loved ones until a true need arises; as a result, most families find themselves in the midst of chaos. You learned that there are, currently, 30 million households in the nation that are caregiving for adults, 50 years of age and older.
Over the course of the next 25 years, this number is expected to double. We expounded on the fact that it is important to start with the development of a caregiving plan.
In this guide, we will focus on starting the conversation about care needs that may be experienced later in life. Preparing to talk about this important financial matter is often the most difficult step of the process. Once the conversation is done, the next step is to simply go to the bank and have a representative help you with the various options that you have when it comes to saving money.
Preparing to Talk About Future Financial Needs of an Aging Loved One
It is likely that you currently see your parents as being fiercely independent. As a result, you may find that it is very difficult to initiate a conversation on the possibility of needs occurring in the future. Before starting the conversation, there are a few points that you should have at your disposal and a few considerations that should be made. These are as follows:
- Long-term care in a skilled nursing facility typically costs $205.00 a day or approximately $6,235.00 each month for a shared room. A private room usually costs $229.00 a day or approximately $6,965.00 each month. For a one-bedroom room in an assisted living facility, the costs average $3,293.00 per month. If memory care in an assisted living facility is needed, the average costs are about $4,000.00 per month. When speaking with your loved one, express these costs to them to give them an idea of just how much of an expense long-term care is, when needed.
- Next, you should let your loved one know that you want to know what they want and expect when it comes to long-term care. Let them know that you want to make sure that you know this now so that you can ensure that their wishes are met if/when the time comes.
- Finally, when speaking about the subject, do not TELL your loved one what is going to happen or how it is going to happen. Instead, approach the subject with the attitude of being open and receptive. Remember, to listen.
The Next Step
Once you and your loved one has agreed that planning for the possibility of long-term care later in life is now necessary, you may then encourage them to go to the bank and see what their options are.
Many may want to start a savings account. Others may opt for a Money Market Account. There are many options to choose from. The point is, to start as soon as possible.
Even if your loved one never requires long-term care, you never want to be in a position with absolutely nothing if that need arises. It is best to prepare for the worst, and hope for the best.