Wednesday, August 16, 2017
Suzanne Shier, chief tax strategist at Northern Trust, noted an increasing number of Americans who are facing unexpected expenses as they close in on retirement: support for elderly parents. Many individuals hope and plan to provide some support for their children, and if possible, grandchildren. But, as the life expectancy for the average American continues to increase, more and more planning and resources are being dedicated to the support of aging parents who are still alive and relatively healthy as their children are entering into retirement.
Some individuals nearing retirement have been forced to extend their employment stay in order to accommodate expenses for parents’ costs. Others have planned a bit differently and have instead chosen to work out an arrangement with siblings to pool resources to support parents. Shier commented, “It’s an expense that people hadn’t thought much about but that more and more people are having to accommodate.”
This trend is unlikely to abate in the near future. Currently, there are over half a million people on earth over the age of 100. Data suggests that there may be upwards of 3.7 million centenarians by 2050.
See Juliette Fairley, More Retirement-Age Clients Facing New, Unexpected Expenses, Financial Advisor, August 7, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.