Financial Planning for Aging Parents: What to Do Before a Crisis Hits

When you’re juggling your career, kids and household, adding your parents’ financial future to the mix can feel overwhelming. But if you have aging parents, there’s a good chance you’ll need to step in at some point – financially, emotionally, or logistically.

The earlier you start preparing, the more options you’ll have. And while these conversations aren’t always easy, they’re one of the most powerful things you can do to protect your family’s long-term wellbeing.

This likely won’t be a one-time chat. It’s often an ongoing, emotional process that looks different for every family, depending on your relationships and financial situation. Still, the important thing is to start.

Here are some ideas on how to begin planning:

1. Start the Conversation Early, Even If It’s Awkward

This is often the hardest step. Money, aging and independence are sensitive topics. Your parents may not want to feel like a “burden” or may be in denial about future needs.

It would be ideal first to figure out your own finances and where you stand on certain topics, but don’t let that delay the first discussion. The sooner you talk, the more time you’ll all have to make informed, intentional decisions.

What to ask:

• How are your finances currently organised?

• Are there any debts, pensions or investments I should know about?

• What are your preferences for care if something happens?

• Do you have a will or power of attorney in place?

Approach it with curiosity, not judgment. Emphasise that you want to understand their wishes, not take over.

2. Get a Clear Picture of Their Finances

Understanding what your parents own, owe and spend is key to planning. Many people in their 60s and 70s still manage their finances on paper or across scattered accounts, which can make things harder to track.

You could start by helping them figure out (or gradually observe) where their money goes each month – routine expenses, recurring bills and any income sources.

One helpful approach is to begin with their monthly budget: this can be less intimidating than asking for a full list of assets and often sparks meaningful conversations as you go. It may also help you plan or adjust any financial support you’re providing – something that’s common in many families, though not always expected.

Over time, work together to gather everything in one place:

• Bank accounts and credit cards

• Superannuation, pensions or retirement savings

• Investments (funds, shares, bonds, property)

• Insurance policies

• Debts or loans

Once you know what’s there, you’ll be better able to assess risks and build a plan. Make sure a trusted family member knows how to access these records if needed.

3. Understand What Government Support Is (and Isn’t) Available

Before diving into research, try to understand how your parents hope to spend their later years. Their wishes – whether it's aging at home or moving into care – will help guide what kind of support to look into.

That said, this process rarely follows a neat checklist. Be ready to adapt, and take it one step at a time. If they're not ready to talk, starting with your own research can still help you prepare and protect your own wellbeing.

Each country offers different levels of public support for older adults, but it’s often not as comprehensive as people think.

Australia

The Australian Government offers subsidised aged care services to ensure fair access for all older people. Financial assistance is available through various payments and support schemes for older Australians, carers and veterans, with additional help offered for those experiencing financial hardship.

UK

People aged 60 or over may be eligible for a range of cost-of-living support, including Pension Credit, Housing Benefit, discounted or free travel, help with NHS costs, and reduced TV licence fees.

US

Seniors can access a range of government aid programs covering housing, healthcare, food and income support – including Medicare, Medicaid, Social Security, SNAP, and housing assistance. Additional services support employment, legal aid, utility costs and community engagement.

Do your research for your parents’ specific situations. Knowing what’s covered – and what’s not – can help you estimate future financial needs.

4. Create or Review Key Legal Documents

If your parents haven’t already done this, now’s the time:

• Will: Outlines how their assets should be distributed.

• Power of Attorney: Allows someone to manage finances or healthcare decisions if they’re unable to.

• Advance Healthcare Directive / Living Will: States preferences for medical treatment in serious situations.

These documents protect your parents and give the family clarity in difficult moments. Make sure they’re updated, accessible and legally valid in your region.

5. Plan for Housing and Care Scenarios

One of the biggest financial unknowns is care, especially if a parent can no longer live independently.

You don’t need to solve it all at once, but it helps to understand:

• Where do your parents want to live as they age?

• Can their current home be made safer or more accessible?

• What does aged care or assisted living cost in your area?

• What support networks (family, community, services) are nearby?

Even informal care – like you or a sibling stepping in – comes with hidden costs. Thinking through scenarios early can reduce stress later.

6. Check and Supplement Insurance Where Needed

A medical emergency, fall or chronic condition can drastically change your parents’ financial situation.

Help them review:

• Health insurance coverage: Are all major needs covered?

• Life insurance: Do they have policies that could support a surviving partner?

• Long-term care insurance: More common in the US, but worth reviewing where available.

If coverage is limited or outdated, it may be worth adjusting now, even if it feels premature.

7. Protect Your Financial Future, Too

It’s natural to want to step in and help your parents, but don’t do it at the cost of your own family’s stability.

Make sure your budget reflects what you can contribute, not what you feel guilty about. And keep saving for your own retirement – so your children won’t have to face the same pressure down the line.

Supporting aging parents doesn’t mean doing it all alone. The goal is to make a plan that works for everyone.

Final Thought: Caring Means Planning Ahead

You can’t predict the future, but you can prepare for it. By helping your parents get their finances in order, you’re not just protecting their wellbeing – you’re safeguarding your family’s stability, too.

Start the conversation. Map out the details. And take the first step toward peace of mind for everyone.