Sunday, July 21, 2024

Growing old: The key costs deciphered

As the saying goes, there are few things in life that are certain, but something that falls into this description is that we all are going to grow old. Rather than focus on all of the medical changes that your body is probably going to go through, today’s topic is going to look more at numbers. In other words, as you grow older, your financial situation can turn on its head, and this is what we will now look at in more detail.

Paying for your funeral

We should have perhaps highlighted something of a disclaimer at the start of this article; things might get a little morbid. This occurs with this first hidden cost, with a lot of people shocked at just how much a funeral can cost.

Usually, it is family members who are forced to foot this bill, but common practice is to pre-pay. In other words, you will pay for your funeral years in advance, at a rate of today’s money, and save everyone a lot in the process.

The costs of elderly care

It’s been in the news a lot over recent years, but we really can’t get away from the fact that elderly care can cost a small fortune over time.

Hopefully, you won’t need much, or even any, as you progress into your latter years. However, if you do, the costs can spiral into the tens of thousands, and ultimately you’ll need a way to pay for this. Furthermore, this is a bill that will always have to be paid – although some people will pay different levels to others.

The costs don’t finish when the kids fly the nest

The first couple of points we have spoken about has focussed on the mandatory hidden costs of growing old. In other words, you have little choice in the matter.

The next one is certainly optional, but if recent trends are anything to go by, you are almost expected to help your kids out on the property ladder. Ultimately, house prices have just risen to unaffordable levels for young people, and this is where a lot of parents have found they have become the equivalent of a mortgage provider.

At the same time, you have also got to be aware of education. Naturally, this is going to vary depending on where in the world you are based, but if your child is heading to the US for example, we all know the huge investment that a college degree costs.

And then it passes through to the grandchildren…

Out of everything we have spoken about today, there’s no doubt that this is the most “optional” point of all. Again, with housing costs and even education fees rising, a lot of grandparents are finding that they are assisting their children’s children.

Also, we are finding that a lot of grandparents are helping out with childcare. This is for the simple reason that a lot of parents are struggling to juggle their job and parenting duties financially. Granted, some governments have devised initiatives to help with this, but again, it’s not something that was historically budgeted for and should be taken into account.

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