• Understand their financial situation: Start by having open and honest conversations with your aging parents about their financial situation. This includes understanding their income, assets, debts, expenses, and any existing financial plans or arrangements they have in place.

• Create a budget: Help your parents establish a budget that reflects their current and anticipated expenses. This will provide a clear picture of their financial needs and help identify any potential gaps or areas where adjustments can be made.

• Assess healthcare costs: Healthcare expenses tend to increase with age. Review your parents' health insurance coverage, including supplemental plans, and ensure they have appropriate coverage for their needs. Consider the potential costs of long-term care, such as nursing homes or home care, and explore options for long-term care insurance if applicable.

• Review legal and estate planning: Encourage your parents to create or update important legal documents, such as wills, trusts, powers of attorney, and rep agreement. Consult with an estate lawyer to ensure their wishes are properly documented and their assets are protected.

• Consolidate and organize financial accounts: Help your parents consolidate their financial accounts if they have multiple scattered across different institutions. Simplifying their accounts can make it easier to manage and track their finances.

• Identify and maximize income sources: Explore all potential sources of income for your parents, including CPP, OAS, pensions, retirement accounts, and investments. Optimize their income by understanding the best timing for claiming CPP benefits and maximizing returns on their investments.

• Explore government assistance programs: Research government assistance programs that your parents may be eligible for, such as Fair Pharmacare, Veterans Affairs benefits, or other local programs. These programs can help alleviate financial burdens associated with healthcare and long-term care.

• Consider long-term care insurance: Depending on your parents' circumstances and preferences, long-term care insurance can provide financial protection against the high costs of extended care. Evaluate the options available and assess whether it makes sense for their situation.

• Plan for your own financial well-being: Caring for aging parents can have financial implications for you as well. Take the time to review and adjust your own financial plans, including budgeting for additional caregiving expenses or considering the impact on your retirement savings.

It's important to note that financial planning for aging parents can be complex, and it's advisable to seek guidance from a financial planner or estate lawyer who can provide personalized advice based on your parents' specific circumstances.

Sources: https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.what-you-need-to-plan-for-when-caring-for-aging-parents.html

https://www2.gov.bc.ca/gov/content/family-social-supports/seniors/caring-for-seniors