Thinking about money in old age can feel uncomfortable, especially when you are already juggling health concerns, family responsibilities, and sometimes dementia care. Yet clear, compassionate financial planning is one of the greatest gifts families can give their older loved ones – and themselves.
This article is for information and education only and does not provide specific financial advice. Every family’s situation is different, so please speak with a contact us for personalised recommendations, and contact us if you would like guidance that considers both dementia care and family well-being.
Clarify current finances and future goals
Good planning starts with a clear picture of where things stand today. List all income sources (pensions, EPF/CPF withdrawals, savings interest, rental income), regular expenses, debts, and key assets such as the family home or investment accounts.
Once you understand the basics, discuss goals together as a family. Common goals include staying at home as long as possible, being able to afford help at home, and avoiding sudden financial shocks that might force rushed decisions about care.
Plan for healthcare and long-term care costs
Healthcare spending typically rises with age, and long-term conditions such as dementia can add substantial extra costs over many years. These may include medical appointments, medications, mobility aids, home modifications, transport, and eventually paid home care or residential care.
Families who plan early have more options. Consider what public coverage exists in your country, what is covered by insurance, and what must be paid out of pocket. International research shows that out-of-pocket long-term care costs for dementia can easily reach hundreds or even thousands of dollars each month, creating real stress if there is no plan in place.
Protect retirement income and avoid sacrificing your own future
Many adult children quietly dip into their own savings to support ageing parents, especially when care needs increase. While this comes from love, it can also leave caregivers financially vulnerable in their own retirement if there is no clear plan.
Where possible, keep contributing to your own retirement savings, even if the amount is small. A written family agreement about who pays for which expenses, and how decisions will be made if costs rise, can reduce misunderstandings and protect both the older person and the caregiver’s future.
Build an emergency fund for peace of mind
Unexpected costs are almost guaranteed in later life – a fall, a hospital stay, a sudden need for more intensive support at home. Financial experts consistently recommend building an emergency fund that can cover several months of essential expenses as a buffer against these shocks.
Even a modest emergency fund can reduce anxiety and prevent families from having to sell assets quickly or take on high-interest debt when a crisis hits. Setting up a separate savings account and contributing regularly, even in small amounts, is one practical way to start.
Get organised: documents, permissions, and safeguards
Practical organisation is just as important as investments. Families are better prepared when key documents such as wills, insurance policies, bank details, and medical summaries are stored safely and can be located quickly in an emergency.
It is also wise to discuss legal tools in your country that allow a trusted person to help manage finances if an older adult becomes unable to make decisions due to dementia or other conditions. Clear arrangements can reduce conflict, prevent financial abuse, and ensure that the older person’s wishes are respected.
Why professional and holistic advice matters
Financial products, tax rules, and public benefits differ widely between countries and can change over time. Research also shows that financial decision-making abilities can decline with age, even when confidence remains high, which increases the risk of mistakes and vulnerability to scams.
Because of this, it is important to seek advice from qualified financial professionals who understand local regulations and can tailor a plan to your family’s needs. This article is not financial advice and cannot replace personalised guidance – but it can help you ask better questions and start more meaningful conversations with both professionals and your loved ones.
Conclusion: planning for security and dignity
Thoughtful financial planning is ultimately about dignity, safety, and peace of mind in old age, not just numbers on a page. When families plan early, they are better able to honour an older person’s wishes, support caregivers, and respond calmly when health needs change.
If your family is navigating ageing or dementia, it can be overwhelming to think about care needs and finances at the same time. Our dementia care services focus on the whole family – emotional, practical, and financial realities included. Reach out to us if you would like support in understanding care options, planning ahead, and creating more peace of mind for everyone involved.
