Managing your parents’ FINANCIAL HEALTH
Running a household has its ups and downs so each week we bring you the latest tips and tricks to make your home life easy
Author, performer and comedian Jean Kittson knows everything you need to know about supporting ageing parents which many of us are doing right now, she’s been through it all with her own folks, Elaine and Roy. In Australia, the current generation of the elderly is living well into their 80s and 90s, requiring an unprecedented level of care and attention from the generation below.
Jean provides scrupulously researched advice on many common issues faced when dealing with ageing parents, while using her razor-sharp wit as a tool to take the edge off difficult topics. Here she shares some important tips on helping to manage our parents’ financial health.
HOW TO AVOID A FINANCIAL NIGHTMARE
When we parent our children, we teach them how to handle their own money, their super, their tax returns, their bills, their insurance, their credit cards, their investments (when their salaries exceed their phone bills), and all the book-keeping that comes with growing up.
When it comes to your parents, your goal is to make sure they have control and understanding of what happens when things change; when the print on their bank statements becomes smaller, or they outlive their accountant and their lawyer.
You may think this sounds complicated. This isn’t even my money. I shouldn’t have to worry about this for decades. But if your parents are elderly, they likely will need your pert young mind to help them find their way through the financial jungle/ minefield/maze/cryptic crossword/ bureaucratic labyrinth.
PAY A PROFESSIONAL FINANCIAL ADVISOR/ ACCOUNTANT
This is my Top Tip of All Time to help your parents. There are people who devote their professional lives to monitoring the brain-surges of politicians, and keeping up with changes in fees, entitlements and choices in the aged care sector.
A good financial planner will:
• Keep your elder’s assets safe and accessible.
• Ensure their assets are used to benefit their ongoing care and comfort.
• Ensure government assistance is maximised.
• Keep your parents at the centre of the discussion if they are still able and willing to make decisions.
A good financial planner can either give general or personal advice only, or give personal advice in writing and implement and monitor it on an ongoing basis. Your choice and yes, implementing costs more. Totally worth it.
If you feel you can DIY, most local legal aid and local councils often run free information courses to assist. There is also a free financial information service (FIS) offered by the DHS located at humanservices.gov.au/fis or phone 132 300.
CHECK THEIR ELIGIBILITY FOR THE PENSION AND
JEAN KITTSON HAS HANDY TIPS ON PARENTING YOUR PARENTS FROM HER NEW BOOK, WE NEED TO TALK ABOUT MUM AND DAD
SENIORS’ DISCOUNTS
To be eligible for Age Pension, your elders must generally be older than 66 (it depends on the year they were born), Australian residents for at least 10 years, and pass an income and assets test.
If they weren’t eligible when they retired, changes in their circumstances may mean they are now eligible for a part pension. If they receive just $1 of the pension, this will enable them to access multiple supplements and concessions.
Your parents may have too many assets to qualify for a pension, but still be eligible for a Commonwealth Seniors Health Care Card (CSHC). The purpose of the CSHC is to assist self-funded retirees by providing access to the Pharmaceutical Benefits Scheme (PBS).
There’s an income test to assess their eligibility on the DHS website:
humanservices.gov.au/individuals/services/centrelink/commonwealthseniors-health-card/eligibility/ income-test
IS THEIR BANK TREATING THEM FAIRLY?
Or is their bank patronising them, ignoring them, ripping them off or penalising them because, say, they want to use a passbook because they cannot see the ATM keyboard? Yet our elders are often reluctant to change banks, even when they get insults with every transaction. “We’ve been loyal customers. Of course they respect us.” If you suggest they change banks, they can recoil as if you’ve asked them to move to the Cayman Islands. Try it anyway.