This topic has come to my mind a lot lately because I see the burden my parents are in when they are preparing for their retirement and try to take care of their aging parents. My parents who are in their late 50s, started planning for the retirement for almost 10 years. They calculated how much Old Age Security and CPP they will received by the time they reach 67. They seems to be able to work out their numbers pretty good and believe they would have a decent (but not luxury) retirement.
I am glad that they have everything planed ahead of time, but at the same time I noticed a major flaw of their plan. They forgot to factor the possible cost of taking care of their aging parents. My grandparents are about to reach their 90s and they are relatively healthy living at home with my aunt being a full-time caregiver. My parents are very lucky to be the youngest in their family, and they received better educations than the rest of the siblings. They are also very lucky that the older siblings are taking care of their parents. They are also spoiled by their parents and failed to realize their parents are getting old.
They are okay to realize it’s almost time to reach their own retirement, but they may not know that taking care of their aging parents will cost their retirement fund.
They are never experienced how much it will possibly hold them back when taking care of the seniors at home. They were very little when their grandparents passed. Nonetheless, they always believe majority of the cost will be subsidized by the government. It is not always true.
Not a lot of people are ready
It’s sad to see how fast our loved one deteriorated after they got sick. We often discover one problem after another, and it’s always too late when we figured out they are in urgent need of full time personal care aid or access to a nursing home. Do you know how much personal care aid charge per hour if they are not qualify for government subsidized facility? Or the wait period for government subsidized facility? Lots of medical equipment such as walker or wheelchair are not covered by government and often are out of pocket expenses.
We are talking about months on the wait-list, the senior may receive up to 30 hours of home support while waiting. The rest of the care are depending on you to fill in.
It is okay if you are just realized how expensive it is for elderly care. It’s never too late to open up the conversation with your parents and make sure they are financially on track for their retirement while taking care their aging parents.
What can we do now?
As a Millennial, we are at least one thing better to our parents. We understand how expensive are the senior living than our parents, because we see how much it hold our parents back when they take care of theirs. We should plan ahead for our retirement and make sure we don’t make the same mistake by the time we retire.