Baby boomer parents in Fairfield County and Westchester County are feeling the pressure ”“ sandwiched between the increasing costs of education for their children and some of the highest costs in the nation for elder care services for aging parents and relatives. Decisions about elder care need to be addressed sooner rather than later.
Adding to this pressure is Americans”™ increased life span. According to the U.S. Census Bureau, the number of people who live to be 100 rose from 2,300 in 1950 to nearly 80,000 in 2010, proving the so-called nest egg needs to last much longer than it used to.
Aging brings about many different concerns and fears. A recent survey titled “U.S. Trust”™s 2012 Insights on Wealth and Worth” highlighted the top priorities of high net worth households should long-term health care be needed. The survey was conducted online by the independent research firm Phoenix Marketing International in March, with more than 640 people responding with assets of $3 million or more, not including their primary residence.
Top priorities included being financially independent, not being a burden on children and receiving the best medical care. Furthermore, more than half of the respondents cited as very important being able to stay in their own home and maintaining the lifestyle to which they are accustomed.
Despite these many concerns, the same survey found that only 20 percent of baby boomers have a plan in place for meeting the financial needs of aging parents or relatives, while 30 percent said they are already personally financing their cost of care. Decisions around whether to put an older family member into a retirement or nursing home can be both emotionally and financially stressful without a plan in place.
This lack of planning needs to be remedied so that boomers are prepared for the financial burden of caring for aging relatives and can try to meet their needs as well for their own retirement. Working with a financial adviser to help balance these costs within your existing financial strategy can be crucial to success.
One big step you can take now is to keep it personal ”“ organize financial, legal and health information so that you and your family members can answer vital, unforeseen questions should you or a loved one become incapacitated.
Another is to be prepared. Each family has their own unique concerns and priorities when it comes to health and the type of care they require. Develop a network of advisers, including external health care providers and professionals to help assess your specific needs.
Taking these two simple steps now can help answer many of the unknowns and make unexpected decisions much less stressful to resolve. Working with a trusted adviser and network of health specialists will help you address your elderly loved ones”™ needs as well as prepare you for your golden years so they can be enjoyed without the feeling of being a burden that so many people experience.
Margaret Preston is a managing director and market executive at U.S. Trust, leading its businesses in Connecticut, Western Massachusetts, Long Island and Westchester County, N.Y. She can be reached at Margaret.preston@ustrust.com
