Are You Prepared For Your Parents' Senior Years?

Whether you are a man or woman, as long as you have parents that are still alive, you must give thought to what will happen to your parents as they approach their senior years.

I ran across an interesting and relevent article at New York Life that I feel I must share with you. . .

"Many poeple face their parents' retirement and aging without a second thought, assuming that Mom and Dad are in good financial shape and ready for the golden years. Making this assumption can be a serious mistake. You and your folks may think they are adequately prepared for retirement, but how far down the road have they looked?

With average life expectancy increasing, it's not uncommon for people to live 10-20 years (if not longer) after retiring. A great deal can happen in that time, and life's events don't always work out as planned. Culprits such as inflation and illness can wipe out a nest egg and undermine the financial independence of even the best-prepared retiree.

Inflation and illness can turn a nest egg into a goose egg. Inflation can seriously erode money's purchasing power over time. Even with an average inflation rate of 4%, retirees at age 60 with an income of $2,500. per month will have the purchasing power of $1,388. per month by the time they are 75 years old. In other words, the standard of living will be virtually halved in just 15 years. Many retirees today have found themselves searching for part-time jobs, in order to keep up the rising cost of living. But no one can work forever. And major illness can wipe out - in mere months - a nest egg that took years to build.

According to the Abstract of the United States, 45% of an individual's lifetime medical expenses are incurred during a final illness. That's only half the story. Research figures published by the New England Journal of Medicine indicate that 43% of those who turned age 65 in 1990 will enter a nursing home at some time during their lifetime. As people get older, the probability increases. With nursing home costs on the rise, according to the Congressional Subcommittee on Aging 70% to 80% of nursing home residents dep lete their assets within 12 months.

When retirees' savings are depleted, it adversely affects the next generation, too - usually at the worst possible time. Frequently, adult children of senior citizens are working to provide for their own households and futures. Too often, they become saddled with the cost of supporting their parents while

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