Financial Planning for Eldercare
Tackling Difficult Conversations and How to Create a Plan
When Ozzy Osbourne, frontman for the legendary band Black Sabbath, revealed his Parkinson’s diagnosis on Good Morning America, he highlighted the importance of preparing for life’s inevitable challenges. Parkinson’s is a neurodegenerative disorder, and while Ozzy’s wife, Sharon, described it as “not a death sentence,” she admitted there are good days and bad days. Ozzy mentioned he was fortunate enough to afford advanced treatments in Switzerland—something not everyone can say. His reflections remind us that planning ahead is essential, especially when health challenges arise.
The Rising Cost of Health Care
While many people focus on saving for retirement, fewer are prepared for the growing costs associated with health care in their later years. According to the CDC, the average life expectancy in the U.S. is now about 79 years. Living longer often means dealing with higher medical expenses and the possibility of long-term care.
A Cost of Care Survey reports that 70% of people over 65 will require some form of long-term care. Additionally, around 65 million Americans provide unpaid care to an aging or chronically ill family member, averaging 20 hours per week. Beyond the emotional toll, these caregiving responsibilities often bring significant financial and logistical challenges.
Start with a Family Conversation
One of the most powerful steps you can take is to sit down as a family and discuss a care plan before it’s urgently needed. Early conversations allow families to make thoughtful decisions rather than rushing during a crisis.
During these discussions, consider:
What kind of care your loved one may need
Who in the family is best equipped to help
What financial resources are available to fund care
If there’s disagreement, working with an elder mediator can help navigate tough conversations and ensure everyone’s voice is heard—especially the loved one requiring care. Unless they are no longer able to make decisions, their preferences should guide the plan.
Assemble a Support Team
As life becomes more complex, having the right advisors in place is crucial. Ideally, your team should include:
A financial advisor, to help structure expenses, manage investments, and create an estate plan.
A private health advisor, to coordinate care, review medical records, and ensure eligibility for government or private benefits.
An accountant, to assist with tax strategies, especially if you are financially supporting an aging parent.
An attorney, to draft key legal documents like power of attorney, healthcare proxy, and living wills.
This team can help families navigate the maze of health care options, insurance plans, and the potential costs of long-term care facilities.
Planning Now Makes It Easier Later
It’s not always easy to think about aging and health decline, but having a plan in place makes future decisions clearer and less stressful. Proactive planning means you and your loved ones can focus on what matters most—spending quality time together—without the added pressure of making difficult decisions in the middle of a crisis.
For guidance on building your care plan, contact the financial professionals at NEST Financial. Email us at info@nestfinancial.net to schedule an introductory call.