Unless you’re God (and we’re pretty sure you’re not), you can’t beat Father Time. We are all getting older every day, so aging is something that can’t be avoided.
We are now seeing what is called the “sandwich generation”, where middle-aged folks are caring for both young children and aging parents. This can be very difficult emotionally, but it’s also a huge demand on their Paychecks! So what’s a sandwich-er to do?
Here are Five Fast Facts about how to care for aging parents:
- 💰 What Does It Cost? Cost estimates for raising a child each year are roughly $18k, but that’s *ahem* “child’s play” compared to caring for aging parents, which can be as much as $100k per year! And that doesn’t count the emotional toll, the stress, and the time it takes to keep all those juggled balls in the air. Call us crazy, but we don’t think $120k per year raises happen all that often (unfortunately) so you’d better come up with something else.
- ⚕️ Isn’t That What Medicaid Is For? Many people think Medicaid covers the cost of aging, but that’s not a good option to bank on. For one thing, there’s income restrictions, so that rules out a lot of middle- and high-income families. There’s also the very real danger – given our government’s spending binges – that the program will run out of money or have to cut benefits in just a few years.
- 💸🚂 The Debt Train - About a third of Americans in a recent survey said they’d have to take on debt to care for aging parents. This is a problem in itself, but even more so when you consider that about half of those don’t have adequate life insurance, and only 29% have disability insurance to cover a potential loss of income. It’s stacking the deck against yourself multiple times.
- 📣 What To Do? The main thing is to have the conversation. We get it, it’s uncomfortable for everyone. But it’s so important to talk about things and make a plan that everyone agrees to. Set up financial and health care power of attorneys so the aging parent can clearly make their wishes known, and so the sandwich-er has the legal authority to make the necessary decisions when the time comes. If you wait until disaster strikes, it may very well be too late, and then you have to fight the system (or government) in addition to dealing with the actual emergency. A little planning goes a long way on this!
- 💡 Solutions Do Exist - After you have the conversations, there are options for different levels of care. Sure, there are traditional nursing homes, but the Baby Boomer generation’s mass retirement is prompting a lot of residential centers and other communities to open that provide more targeted social, educational, and interactive living experiences that help our elders stay active and as healthy as possible. Take the time to do your homework and seek expert guidance. Consider long term care insurance early on so you can pre-fund this stage of life when you have more disposable income (your kids will thank you for it later).
🔥Bottom line: This can be a tough subject to approach, but you’ve got to do it. Both the sandwich-er and the aging parent need to understand the other’s perspective, come from a place of love and dignity, and should work together to find the best balance for everyone. The sooner you can get this started, the sooner you can put a plan in place. That can make all the difference when crunch time arrives, both to your mental and emotional state, as well as to your Paycheck.
What’s been your experience with aging parents?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
