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The Companion Advisor: Taxes & Estates
Taking care of aging parents
Steps to help prepare for long-term care

By Fidelity Investments Canada
A Companion Advisor article

The population is aging faster than ever before. In 1997, there were 390 million people over the age of 65, comprising 6.6% of the world’s population. By 2025, this number is expected to exceed 800 million, or about 10% of the population.

This demographic shift will soon become a serious challenge for our society. In addition to taking care of their children, baby boomers may well be responsible for the care of their aging parents. Add to this growing concerns about the long-term financial viability of government-sponsored medical care, and you have the makings of a full-fledged crisis.

Most people tend to avoid a discussion around health care planning, simply because they prefer not to face their own mortality or the difficult decisions surrounding it. The truth is, discussing the topic early with your parents can save you and your family problems in the future. Here's how:

Talk to your parents about their wishes

Find out their perspectives on housing arrangements and medical procedures. Support them in building a comfortable future. Be sensitive when discussing their concerns and wishes—the subject of long-term care can touch on a variety of intensely personal issues, so you’ll want to initiate the conversation with sensitivity and empathy.

Get the whole family involved

Taking care of your aging parents is usually more work than one person can handle. That’s why it’s a good idea to discuss the topic with your siblings and other members of the family if appropriate. Find out what their positions on the subject are. Are they able to help financially? Or perhaps with their time?

Clarify your parents' financial situation

To create a viable caring strategy, you’ll need to know exactly where your parents stand financially. Reviewing finances early will enable you to take appropriate action if required.

Look for help outside of the family

Caring for elderly parents is a popular topic, and it’s sure to become even more so as the population ages. Keep an eye out for services and seminars in your community that address the topic. Look into seniors’ organizations, churches or community centres for assistance—you never know where you’ll find help.

Financing long-term care

There may come a day when your parents require financial assistance so you’ll want to be prepared. Most Canadians will have three main options: government-sponsored care, in which case you will have little control over the care provided; private funding, where you may have to dip into your savings or home equity; or long-term care insurance.

Long-term care insurance is a sensible choice for many families. However, with so many variables to consider, it’s a decision that’s best made after a thorough discussion with a qualified financial professional.

This content is for information purposes only and is not intended as specific investment advice. We strongly recommend that you consult your investment professional for a comprehensive review of your personal financial situation. Information is subject to change without notice and Fidelity Investments Canada will not be held liable for any inaccuracies.

Notice: Fiscal Agents Financial Services Group are not engaged in rendering tax, accounting or legal professional services or advice. The comments in this article are not intended, nor should they be relied upon, to replace specific professional advice. Before acting on material contained herein. Readers should seek advice that is appropriate to their personal circumstances from a professional advisor.

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