This week on WCCO Radio, we've been featuring a series called Family Transitions: Plannning for Aging Parents. Thursday's topic concerns the costs of aging and how to navigate through the process with your parents, or other loved ones who are preparing for their golden years. WCCO's Mark Freie spoke with one expert about planning for the expenses of aging.
Costs with aging can make a person's head spin as housing and healthcare do not begin to scratch the surface of expenses associated with growing older. Maura Albrecht owns the Bloomington-based company, Financial Wellness For You.
Albrecht primarily deals with personal financial organization and daily money management services for older adults. Albrecht is also part of the Minneapolis-St. Paul Chapter for Aging in Place.
"Aging in place means, where do you want to live and how do you want to live?" said Albrecht. "Aging in place is really bringing those services one may need, wherever they choose to live, to them and making sure they're living safely."
Related: Why you shouldn't wait for a crisis to start planning with aging parents
Housing can put one of the biggest dents in a bank account as people grow older. Albrecht says some of her clients start to see rent costs ranging from $2,000 to $3,000 per month.
"Most of us didn't have a $3,000 house payment before we retired," she said. "More advanced levels of assisted living can drift upwards of $7,000 per month."
Starting the conversation about family finances can be as simple as taking a look at your own finances.
"Sometimes it's easier to say 'I'm getting some of my finances in order, maybe it'd be good to look at your financial situation as well'."
It’s easier for people who start planning for their financial situation earlier in life.
“Planning in retirement is a lot more difficult than planning outside of retirement,” Albrecht said. “The earlier you start, the more choices you are going to have. It may sound funny, but really the earlier you teach people, the better. That could be as young as six years old“
Planning is even more important as individuals are living longer, which impacts financial situations.
“People may live longer in retirement than they ever did before retirement. For some people, retirement is the first time they’ve ever gotten a choice in what they want to do every day.”
A multitude of resources are available, including from the Minnesota Department of Human Services. Resources include economic, health care services, and more.
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