Planning for elderly care requires proper budgeting and understanding of the special needs these persons might have. In addition, elderly care requires a financial commitment, and therefore it is important to prepare adequately. In this article, we take a look into some of the financial mistakes families make when planning for elderly care. Therefore, keep reading to know the areas that you need to carefully think about when it comes to elderly care.
1. Failing to Plan Ahead
Many families fail to plan on time and therefore end up making rushed decisions. In the long run, these families either end up not having enough money to care for the needy aged person. Even if the family is financially enabled, they spend a huge amount before it dawns on them they failed to prioritize well. Therefore, it is important that as a family, you put your thoughts together early enough so as to know. If your parents require assisted living, identify the need early so as to be prepared financially. In some cases, people who require assisted living will also come with the need for a senior housing plan. With appropriate housing for the seniors, they are able to enjoy free in-house mobility without involving other people. Therefore, think long-term and plan ahead of time.
2. Not Seeking Financial Advice
It is also important that as you start planning for elderly care, you seek some financial advice from an experienced advisor. However, for some families, they think they know it all. Hence, they end up plunging into serious financial trouble when it comes to caring to give. Elderly care requires a properly drawn financial plan, and therefore it is important that you talk to the financial advisor. This gives you an opportunity to gain some insights into where to commit your finances. Financial advisors are knowledgeable because they have experience and have seen people make financial blunders in the past. Therefore, they can assist you to avoid these mistakes. In this regard, identify a qualified FA in your area who specializes in financial planning for seniors.
3. Taking Mortgages to Purchase Bigger Homes for seniors
Why would seniors whose children are off the nest require a big apartment? The mortgage ends up being a financial burden for the family. Instead, consider downsizing for seniors. Sell the big house and buy a smaller one. Then you can use the savings to settle the outstanding mortgage balance. Unless you are living with the elderly, there is no need for the family to start taking mortgages to buy seniors big apartments that they don’t need. In fact, this creates a need for house helps so as to keep the big house clean. However, with a smaller house that suits the needs of the elderly, there is no need for employing maids that you don’t need. Save more by avoiding this unnecessary expenditure. They don’t need extra space; they are looking for extra affectionate care.
4. Failing to Pay Insurance Premiums on Time
The elderly will often forget to remind you about due insurance premiums. This can end up costing the family because the premiums were not paid on time. On the other hand, family members tend to forget because they are preoccupied with other duties trying to make ends meets. To avoid missing important dates, keep a common reminder and share widely with other family members. This will ensure health assurance and motor insurance premiums are paid on time. Therefore even in times of uncertainties, the bill is paid.
5. Not Comparing the Cost of Assisted Living Services
Settling for nursing care services without comparing the pricing, is not a very wise decision. Compare the prices charged by different nursing homes against the services they are offering to justify the cost. You might be surprised to realize that you are being overcharged yet you can pay fewer amounts for better care. Therefore, before buying any service, ensure you shop around for what is available and the cost associated.
6. Not Factoring Inflation When Budgeting
Families want to ensure that they can afford the cost of taking care of an elderly parent. Therefore, they meet and come up with a budget for which they are willing to share the cost. When coming up with the budget, they fail to factor in inflation and this ends up becoming a cause of mistrust for some. This is especially when they are asked to finance a deficit in the coming years. Therefore, to avoid these and other issues, families need to factor annual inflation rate while budgeting for elderly care.
7. Exposing Themselves to Scams
There is a huge demand for elderly care services, and the opportunity pays well. The profitability of this business attracts people with bad motives. They will ask for an upfront payment and end up disappearing once the check is cashed out. How can families stay away from scammers? The best way is to ask for certification documents from nursing homeowners and verifying their registration. This helps to ensure you are in business with a qualified and trusted nursing caregiver.
These are some of the greatest financial mistakes families make when it comes to elderly care. By avoiding these mistakes, families can help to satisfy the needs of the elderly and have a great experience as they do so.