Here’s How To Afford Care for Aging Parents
Written by
Nicholas Morine
Edited by
Katie Wudel
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As our parents age, the responsibility often shifts toward us to ensure they receive the care they need. This can be a daunting task, especially when faced with the high costs of long-term care. Here’s a guide to navigating these challenging waters with compassion and practicality.
Understanding the Costs
The cost of caring for aging parents can be staggering. As reported by Kate Ferranti via HuffPost, the cost of memory care for conditions like dementia can rapidly deplete a middle-class family’s savings. Medicare often falls short, considering dementia care as “custodial” and thus not covered. The average cost of memory care in states like New Jersey can reach an astounding $8,150 a month, per Ferranti.
Forbes echoed this sentiment, noting that assisted living costs average $48,000 a year, with home health aides costing slightly less. Long-term care insurance might seem like a solution, but it’s often out of reach for many due to high premiums and limited coverage.
Planning and Conversations
The first step in preparing for your parents’ future is to have open and honest conversations. Discuss their wishes, understand their financial situation, and consider legal preparations like wills and healthcare proxies. Joelle Klein of UCHealth Today emphasized the importance of recognizing signs that your parents might need more help, such as difficulties with daily activities or changes in behavior.
Financial Strategies To Consider
- Long-term care insurance: While expensive, it’s worth exploring if your parents are eligible and can afford the premiums.
- Medicaid planning: For those with limited resources, Medicaid might provide some relief, but it’s crucial to understand the qualifications and limitations.
- Personal savings: Encourage your parents to contribute to their retirement accounts and explore options like reverse mortgages if appropriate.
- Investing: As suggested by Forbes, investing can be a way to build a fund for future care needs. However, this requires careful planning and consideration of risk.
Seeking Help From Community Agencies
Don’t overlook the value of community resources and support. Area Agencies on Aging offer various services and can outline available options. Consider also the emotional and physical toll caregiving can take and seek support groups or professional help when needed.
The Bottom Line
Caring for aging parents is a complex and emotional journey. It requires careful planning, open conversations, and a deep understanding of the available financial options. By preparing early and seeking the right help, you can ensure that your parents receive the care they deserve without compromising your financial well-being.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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