Posted by Steve Harmer on Tuesday, April 26th, 2016 at 9:53am.
Seniors own an estimated one-quarter of all financial wealth and over the coming years, their children, some of whom may qualify as seniors themselves, will be not only helping them manage it, but will likely also be the ultimate recipients of whatever is left over after their parents have passed on..
By 2036, Statistics Canada estimates that the over-65 cohort will represent more than 25 per cent of the population — more than triple the number of Canadians over the age of 65 in 1960.
Difficulty managing finances will likely creep up gradually, so aging parents may not ask for help, or even realize they need it. Signs such as unopened mail, large cash withdrawals or changes to legal documents may point to problems, but often a parent’s difficulty managing their finances is less obvious.
The Alzheimer’s Society of Canada reports that 15 per cent of seniors — about 747,000 — are living with some form of dementia. If you know seven seniors, the odds are at least one of them has some form of cognitive impairment. Even seniors who are not suffering from the likes of dementia may still need help with their finances, but it is a situation that children should approach with great care.
Here are five proactive steps you can take to help your parents manage their finances as they age:
Remember that just because someone is losing or has lost mental acuity, it does not mean that they cannot make or contribute to financial decisions. Even someone who has dementia can still express their wishes. So be sure to balance the risks of no oversight with the mistake of overstepping boundaries that are hard to establish when it comes to children getting involved in their parents’ finances.
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