Investor Education

Have You Thought About Your Aging Plan?

October 31, 2024

It’s not just those nearing retirement who need to think about these issues—many families today are balancing the demands of caring for aging parents while managing their own careers and responsibilities.

Addressing aging on Halloween may seem a little pointed, but it’s also a time of year many cultures around the world take a moment to celebrate and reflect on our collective mortality.

Since life, its stages, and the financial aspects tied to them, are essential in wealth planning conversations year-round, we’d like to share a few practical considerations when thinking about aging—and preparing for its costs—in a way that inspires confidence and proactive decision making.

Approach Aging Care Planning Like Financial Planning—Holistically

Earlier this fall, we learned from elder care planning experts, Proactive Seniors Ltd.¹, that there is a strong mindset alignment between effective long-term health planning and wealth planning.

For better outcomes:

Identify your values and goals, then dedicate some time to share these with your family.
Include the next generation in your conversations: the decisions are relevant to and may even directly impact them.
Start planning sooner than later and safeguard your wishes by considering different potential scenarios when thinking of what you want. Brainstorm by asking questions like: “If I was…” “If I needed…” “If I wanted….” “I don’t want…” Share your decisions and reasoning with your family.
Revisit your plan regularly, as no plan is ever truly ‘final.’ Continue to have ongoing conversations with your family as life unfolds.
Consult with an expert/planning specialist for guidance on the full range of available support options, potential costs, and to develop a plan tailored to your unique scenario and vision. They will help you make better-informed decisions.
Just as with their finances, people want independence—which is directly correlated with having a plan, identifying and asking for the support you need, earlier on.

¹ Kathy Mendham (Proactive Seniors). There are many different senior care resources, options, and costs that vary by solution and location. It’s worth researching the available services in your area.

Finding the Right Solution: A Success Story

Meet Claude and Priya: Claude is a retired doctor, in his mid eighties; Priya a retired professor in her mid sixties. Even though Claude is much older, he takes care of the gardening, groceries, and house, as Priya has some mobility and health issues stemming from Rheumatoid Arthritis.

Still, both were doing very well: living at home, enjoying an active and social retirement. They wondered if they should start making decisions related to their future care needs so they reached out to Proactive Seniors Ltd., an elder care planning service in Alberta, to understand what they should be considering.

Their big question was:

Can we stay home? Or should we be moving to something more suited to our age and health?

Through the assessment and discussion, two other potential scenarios were considered:

To simplify (and reduce costs), they could move to a condo where everything was on one floor—no garden or extra house maintenance.
What if Claude had a sudden medical issue? As he is older and the primary caregiver, being in a place where immediate care is available might be a good idea—like a seniors’ retirement residence.

After exploring and evaluating all three options with their elder care planning advisor, they decided it wasn’t necessary to move into a seniors’ residence as they still were active and managing well at home; the condo didn’t add much in the way of benefits, while removing a big source of their enjoyment, the yard and garden.

They decided to stay at home and begin making modifications like adding a stairlift, ramps and other home safety measures, and they outfitted a dedicated suite in the basement so that when extra help is needed, they can hire a live-in caregiver. They also decided what indicators would trigger the decision to move to a seniors’ residence (no longer driving or widowhood) and decided which seniors’ residence they prefer for when the time comes.

➤ By going through the planning process, Claude and Priya were able to make an informed decision on what they wanted, a backup plan for where to go if they needed to move suddenly, and a robust plan for how to stay in their home.

➤ Each scenario required the need to really understand their entire financial position, as the care options costs varied significantly.

Planning is Important at Every Age—and for Every Life Stage

Envisioning your future—the entire journey, creaky joints and all—is daunting, given life’s inherent unpredictability, but going through the exercise is essential. With a clear vision, it’s easier to create a roadmap for where you want to go, determine how much it may cost to get there, and identify the support you may need for the journey. It also makes for easier pivoting and helps to alleviate your family’s anxieties around your wishes should circumstances suddenly change.

So, rather than allowing any aging plans to haunt you, reach out to your Investment Counsellor to see how your financial and investment plans consider and factor in your aging goals and wishes.

Disclaimers:

This communication is an overview only and it does not constitute financial, business, legal, tax, investment, or other professional advice or services. It is not intended to be a complete statement of the law or an opinion on any matter. If you (or any of your family members) are a U.S. citizen, hold a U.S. green card, or are otherwise considered a U.S. resident for U.S income/estate tax purposes, the Canadian and/or U.S. tax implications could be substantially different from those outlined herein. No one should act upon the information in this communication as an alternative to legal, financial or tax advice from a qualified professional. No member of Mawer Investment Management Ltd. is liable for any errors or omissions in the content or transmission of this email or accepts any responsibility or liability for loss or damage arising from the receipt or use of this information.

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Mawer Investment Management Ltd. provides this publication for informational purposes only and it is not and should not be construed as professional advice. The information contained in this publication is based on material believed to be reliable at the time of publication and Mawer Investment Management Ltd. cannot guarantee that the information is accurate or complete. Individuals should contact their account representative for professional advice regarding their personal circumstances and/or financial position. This publication does not address tax or trust and estate considerations that may be applicable to an individual’s particular situation. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.