With life expectancy on the rise, a growing number of children are having to fill the role of caregiver for their ageing parents. While longer lives mean more time together, this can also cause financial stress, with many reporting a significant drop in income after taking on the responsibility of caring for their elders.
These tips can help you to budget better so that you get to enjoy those extra years without having to worry about your own financial security or your parents’ well-being.
Plan Ahead
It’s never too early to start planning, and to do this you need to have open and honest conversations about medical needs, financial situations, legal documents and the kind of care your parents may require.
Once you have this information, you can track income, expenses, savings and possible care costs to create a clear financial plan.
In addition to ensuring your parents have a will, it’s also a good idea to look into UK power of attorney services that enable you to make decisions for your parents when they can’t do so because of illness or incapacity. Firms such as //powerofattorneyonline.co.uk/ offer this service at a very reasonable cost.
Maximise Pension and Investment Potential
By reviewing your parents’ state or private pensions, savings and any investments they might have, you can ensure the best possible support for their later years.
A financial adviser can help you to maximise the potential of these income streams and ensure that any eligible benefits are claimed. These can include pension credits, Attendance Allowance and council tax reductions, all of which make it easier to maintain your parents’ quality of life.
Apply for Financial Help
Budgeting is much easier if you have financial support, and, depending on your circumstances, you or your parents may be eligible for a Carer’s Allowance or Personal Independence Payment.
Charities like Age UK also provide free emotional support and advice for both children and their parents. This can help to reduce stress and make communicating and planning easier and more manageable.