Are your parents on the verge of retirement? Before they officially hang it up, make sure that they are financially prepared for the next chapter in their lives.
Retirement is a wonderful stage in a person’s life. It’s that moment when you realize that you are finally done with working and are set to enjoy the rest of your years doing what you love. However, aging can also be a challenging period. As much as we’d like to deny it, we become physically and mentally weaker as we grow older. This is why most seniors require proper medical care.
Unfortunately, medical care is expensive. As the population of the senior community in Singapore continues to increase, so does their need for a better quality of life. But despite that fact, not all elderly Singaporeans are equipped with the right means to sustain their needs. Having insurance and receiving proper medical care will enable seniors to live happier and more comfortably.
If you have ageing parents, call their attention and read this blog post together. This is a good start for your financial planning.
Tips on how to plan for your aging parents’ insurance and medical expenses
Calculating expenses can be a pain on the neck. However, facing the reality is a major step towards embracing responsibility. It will be much better for you and your loved ones to be prepared so that you will not experience any hardships later on. Planning and organizing your budget will give your aging mother or father higher chances of enjoying their retirement years without having too much to worry about.
If your now or soon-to-be elderly parents aren’t aware of how to be financially ready, you can step up and guide them.
Here are ways to plan for your parents’ insurance and medical costs:
1. Look for the right life and health insurance
Having insurance is important because it keeps you prepared for any problem that you might encounter in your life. It makes you feel secured, knowing that you have invested money that will be of use to you in the future. Two types of insurance are crucial for seniors: life insurance and health insurance.
Having life insurance guarantees that if anything ever happens to the policy owner, there will be financial compensation left for their beneficiaries. The benefits may also be used for whatever final expenses are left unpaid by the policy owner. This may also include costs for funerals or cremations.
Health insurance, on the other hand, covers expenses for any medical-related services. This can be used for check-ups, laboratory tests, and others that are included in your purchased Senior Citizen Health insurance plan.
Although some might be skeptical about insurance, it’s a good investment that will keep you financially secure. This will be a great advantage for your aging parents because they will no longer have to worry about heavy expenses.
2. Research on government subsidies and financial assistance schemes
Other than insurance, there are other ways to gain financial support. Seniors can apply for government subsidies and financial schemes. All they need to do is to undergo an assessment. There are certain qualifications that they should have to be granted the desired scheme. Subsidies and financial assistance are specifically dedicated to seniors who come from low-income households or those who don’t have a family to support them. These will help lessen their costs and expenses in various aspects such as housing, nursing care, and others.
Note: Some housing developers in other countries just like old folks nursing homes in Singapore and other assisted living facilities offer in-house financial assistance for the elderly.
3. Reach out to a financial consultant (if necessary)
If you are unsure of how to plan your finances strategically, you may seek the help of a financial consultant. A financial consultant is a professional that can assist you by assessing your current financial situation and helping you build a plan that will help you reach your goals. They will provide you with recommendations, tips, and how-to’s when it comes to your finances.
You may look for one with a good track record with their clients and arrange an appointment with your parents. If your loved ones are a little bit hesitant to manage their finances properly, maybe having the opinion of someone outside the family will help persuade them.
4. Organize and manage your budget
One great way to be financially prepared is by managing your finances. It’s important to make efforts in overseeing the inflow and outflow of income in the household. Some adults are pretty good at this but some are not. If your parents are the type who do not monitor and plan their budget accordingly, encourage them to do so.
You can do this by creating a financial tracker where you list down your income and expenses monthly and weekly. This way, your parents will have an easier time saving up and distributing their income to needed expenses or investments.
5. Avoid too much impulse buying
There’s nothing wrong with buying the things you like. It’s a rule to allow ourselves to enjoy the fruits of our labor. However, we can make the most of what we make without being financially irresponsible.
If you have the type of parents who love to buy or spend money on the things they don’t need, discourage them from doing so. Impulse buying can get you nowhere because that money could’ve been saved for more important matters instead.
As much as possible, we want our parents to spend their retirement years in the best way. We want them to live healthily and comfortably. However, if we allow our ageing loved ones to disregard the need to plan out their finances strategically, that might become a hard goal to achieve. Gaining access to proper health and medical care costs a fortune, even for seniors with discounts. But once we adopt the right kind of mindset, attitude, and consistency—we can be prepared for the challenge.