Five tips on plan­ning for your par­ents

The Star Malaysia - Star2 - - R.AGE -

OLD folks in gen­eral live longer th­ese days thanks to med­i­cal ad­vance­ments, so it’s im­por­tant for young peo­ple to plan early for the long haul in terms of their par­ents’ re­tire­ment.

Here are five things you should con­sider:

1 Start the con­ver­sa­tion early Chances are, your par­ents won’t want to bur­den you with talk about their re­tire­ment. But an ar­ti­cle on Forbes.com says it’s a con­ver­sa­tion you should have as early as pos­si­ble. There are a lot of de­tails that need sort­ing out, and the ear­lier you start plan­ning for them, the bet­ter it is for ev­ery­one. Ide­ally, you should also seek ad­vice from a fi­nan­cial plan­ner so you don’t leave any­thing out.

2 What’s your par­ents’ med­i­cal insurance like? Fi­nan­cial plan­ner Yap Ming Hui says med­i­cal insurance should be one of the first things chil­dren in­vest in for their par­ents. It can make a huge dif­fer­ence later on if your par­ents re­quire ex­pen­sive med­i­cal care, and it won’t cost too much if you have a few sib­lings to split the pre­mium.

3 Pre­pare for the worst Your par­ents may be healthy now, but you should al­ways plan for the worst-case sce­nario. Plan to save enough money in case they de­velop a se­ri­ous ill­ness. It’s some­thing we don’t like to think about, but we just have to.

4 Plan for the best In an ideal sit­u­a­tion, your par­ents should also be able to en­joy hob­bies and ac­tiv­i­ties dur­ing their re­tire­ment. Don’t just plan for them to have a place to stay and enough to get by. Re­mem­ber that they need - and de­serve - to en­joy their re­tire­ment as well, and that means ex­tra cost.

5 Put your fi­nances first In the cur­rent eco­nomic cli­mate, Yap rec­om­mends young peo­ple fo­cus on sav­ing money, pe­riod. Forbes.com also tells young peo­ple to plan for their own lives first, and sim­ply con­sider their par­ents’ wel­fare in any de­ci­sion. For ex­am­ple, you should plan to buy a house - but at the same time con­sider whether it has room for your par­ents to one day move in.

Al­though most young peo­ple say that they will care for their par­ents as they age, sta­tis­tics from the Wel­fare Depart­ment shows that at least 10 el­derly per­son gets ad­mited to an old folks’ home ev­ery week.

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