Ageing conversation leading into the festive season

Over the last couple of years, getting together with family during the holidays has had its challenges.

For those who celebrate together in 2022, it may be the first time in months or even years they break bread with parents, siblings, and other loved ones, providing an opportunity to observe and reflect on notable changes.

Topics such as a decline in mobility, an increasing need for care and support and estate planning aren’t the types of conversations we look forward to having over Christmas lunch. However, it is often after festivities wind up, where changes in those we love are apparent, that the need to look into support options quickly jumps to the top of the list of New Year’s resolutions.

Sometimes your clients will raise this with you. Other times, they won’t see the need, or relevance, or they simply don’t want to face into the conversation. Somehow this conversation needs to be prioritised.

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The importance of advice and the ageing conversation

At some point, most of us will need to have an ‘ageing conversation’ for ourselves or our parents. Financial advice in this area is often reactive, if it’s received at all.

The ageing conversation is about much more than aged care advice. Whether it’s moving in with adult children for care or support, or to be closer to the grandkids, professional home care services, or making the right estate planning arrangements, time is critical. That is, time to plan, to review options and have discussions with key decision makers.

You need to consider how you’ll meet your client’s needs and open the dialogue to discuss not just their own needs, but important changes impacting their extended family, which may eventually impact them. Particularly in relation to aged care advice with all its complexities, it may be you are not in a position to advise in this space. Bringing an expert to the table or partnering with another financial adviser external to your business, can enable you to retain your clients, while meeting all their advice needs.

Aged care advice also provides a significant opportunity for fostering lasting and new relationships as in many cases, you’ll be providing advice to adult children as Enduring Powers of Attorney on behalf of parents.

Why don’t people seek advice in advance?

It can be hard to pre-empt when these needs may arise, and just as hard to know if and when there will be a need to provide support to family. Also, some of the key issues that lead to these changes can be sudden or may not be identified as triggers for financial advice. Insignia Financial’s True Value of Advice research paper found that of the reasons provided for not seeking financial advice, 61% of people don’t think they have enough wealth to need advice and 55% don’t believe they have a current advice need.

The impact of this is that the right advice is often not received at the right time, which can have significant consequences. So much of the value provided in having the ageing conversation extends to non-financial outcomes. For example, peace of mind the right arrangements are in place, and a considerable amount of value can be added even to clients who are Age Pensioners.

It is up to us in many cases, to ask the right questions and to have the right conversations on an ongoing basis, to identify where change is on the horizon.

Top tips to consider 

1) Try and anticipate future changes 

Understand not only your client’s circumstances but their broader family tree. Who is physically or financially dependent on them now, and how might this change in the future? Understand current living arrangements and longer-term suitability as mobility and health changes.

Don’t assume the 40-year-old client doesn’t have a need in this area. It could be at some point they’re going to have to take on a significant caring responsibility for an ageing parent – physically or financially.

2) Think deeply before jumping into dual occupancy arrangements

Moving in with the kids has become increasingly common. Sometimes, significant amounts of money can change hands to fund a house extension, or the construction of a granny flat, or to compensate for care and support. It’s important to think long-term about these arrangements and for everyone involved to have a clear understanding of each other’s needs, expectations, and responsibilities and to seek independent legal advice.

3) Plan ahead for home care services

Is gardening still relaxing or is it a chore? Look for subtle changes that could be early signs of frailty and talk about how life could be easier with some help. Home care services can provide personal support, in-home nursing, and assistance with domestic duties like gardening, home maintenance, and meal preparation. The current wait time for a Government Home Care Package is three to six months so planning ahead is important.

4) Have the conversation no-one wants to have about residential aged care

Often called ‘the carpark conversation’, it often evolves in a hospital carpark, after a loved one has had a fall or health episode, bringing to a head important decisions (and often, family tension) that are even more difficult to make under time and emotional pressure. It’s estimated over 68% of people in residential care have moderate to severe cognitive impairment, meaning in most cases, it is often too late to make some important decisions and arrangements.

Plan ahead, and make sure Enduring Powers of Attorney are in place well before a care need arises.

Jenneke Mills is head of technical services at Insignia.