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Balancing Retirement Savings While Supporting Adult Children

senior retirement savingsA recent survey performed by Pew Research discovered 48 percent of middle-aged adults with grown children gave them financial support in 2012. 15 percent of the survey respondents admitted to helping both adult children and parents. “When it’s both, it gets overwhelming,” says Milwaukee financial planner Alan Moore.

Even if individuals are not doling out the dough, giving of their time can be just as costly. More than 60 percent of those providing care for an aging parent are saving less for retirement, according to the National Alliance for Caregiving. Unfortunately, not all families are aware of the financial advantages of home care. Many adult children would be able to work and save more if they had the assistance of a reputable home care agency – specifically one that offered a home care system or home care software – to help care for their aging parents.

In addition to a reliable home care system or home care software that can help keep seniors safe and comfortable in their own homes, here are a few other tips that can help protect retirement savings.

Set clear expectations. Before lending financial support to your adult child or aging parent, be clear about what the money is for, and how it will be paid back. Experts recommend even putting the details in writing so there is no confusion later on.

Understand the financial situation. If you know what your adult children or parents can (and can’t) afford, you can take proactive steps before a crisis occurs and avoid risking your own finances. If your parent’s house payment is becoming a burden, it may be time to downsize into a small apartment. This may free up finances to pay for a home health aide and forestall a costlier move into a nursing home. Remember to look for an agency that offers point-of-care transparency, such as ClearCare’s home care system and home care software.

Look for tax breaks. You may be eligible for financial reimbursement by claiming your adult relatives as dependents. Check with an attorney or tax analyst to determine if your family qualifies.

Take advantage of senior services. Government and nonprofit organizations offer a wide range of help for the elderly. There may be volunteers in the area that can stop by and visit your elderly parents while you’re at work. Other options include adult day care services or in-home care. Working with a care provider that offers ClearCare’s home care system and home care software allows you the opportunity to check in on your loved one’s care while you’re away.

Be firm. If your adult children are constantly asking for hand-outs, it’s time to learn how to say no. While you might make concessions for an investment in your child’s future – such as pitching in for career counseling –extras like cell phone bills or concert tickets should be their own responsibility.

Planning for your retirement while supporting others may be difficult, but it can be done. For more tips on creating your elder care plan and how a home care system or home care software can help, contact one of ClearCare’s friendly representatives today.

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