The facts are that women are more likely than men to be the main carers of their ageing parents, so it’s important to understand their money position, including their investments, because this information could seriously impact on your ability to achieve your own money goals.
Research suggests that women are more likely to quit working full time to care for their parents, which not only hurts career progression but also cash flow and long-term superannuation savings.
On top of that because of the ageing Australian population, the financial support required to assist your ageing parents need to be constantly managed.
But we’re not saying that you necessarily have to take over managing your parents’ finances, in fact many ageing parents would prefer their children stayed out of their financial affairs.
But if your parent does require assistance, then it’s good for you to be across what their entitlements may be.
This week for example, the Age Pension is going up by $6.90 a fortnight for singles, while couples will receive an extra $10.40 a fortnight.
Whilst the amount they will receive increased, so too will the payments they make if they are paying for government care including home care services and daily accommodation payments in aged care facilities, as these are set at 85 per cent of the pension.
These amounts change on 20 March and 20 September every year.
The income and assets test was also adjusted impacting those that can receive a part pension.
With investment markets and asset values constantly changing, it might be worthwhile for your ageing parent to review the tests in line with their current circumstances to see if they are eligible.
Other pensions such as the veteran’s pension and disability pensions were also changed.
Remember to get across the big changes that can impact your parent’s finances by reading the media, the Department of Human Services website and of course financy.com.au to see how you can help your parent as they age.
Michelle Chaperon is the co-founder of Carers’ Corner. This is online resource centre in Australia where people with ageing parents can find useful information, get ideas and share experiences to help navigate the maze that is caring for the elderly.
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