Over the last decade, an increased number of adults have been financially burdened by the cost of caring for their parents. Specialized financial planner courses have been created in order to inform financial advisors of the best strategies to successfully plan for additional financial expenses. In addition to personal expenses, many clients now have to worry about how they will pay for their parents' medical care alongside additional costs of their own. A well informed financial planner with a financial planning certificate is able to work with his or her client to formulate the smartest financial plan specific to individual needs. Since 1994, the percentage of adult children caring for their parents has tripled to 10 million people. The financial toll on care providers who are 50 or older averages $304,000 per person in lost wages, pension benefits and Social Security benefits over their lifetime. For women, the cost is higher at $324,000; when compared to men, the average lifetime loss totaled $284,000. Another study found that depression, hypertension, diabetes and pulmonary disease were among caregivers' more-common health problems. The group also experienced higher rates of stress and were more likely to smoke or drink, and those caring for elderly parents were less likely to get their own preventive health screenings. These factors could add to their own healthcare costs in the future. According to statistics collected by the Federal Reserve, the median household headed by a person between the ages of 60 and 62 with a 401(k) account has less than one quarter of what is necessary to maintain their standard of living in retirement. Even when Social Security and any other pensions or savings are included, most 401(k) participants appear to have insufficient savings. A certified advisor with a financial planning certificate can do his or her best to help clients redirect their savings plans. Advisors often cite that 85% of pre-retirement income is needed to maintain a client's living standard. The median 401(k) plan held by households headed by those ages 60-62 is under $150,000, which would generate $9,100 a year for a couple. This number is incomparable to the yearly cost of living plus expenses for elderly care. The median income of such households is $88,000. To maintain the same standard of living, such households would have to obtain $75,000. According to Fed survey data, Social Security will make up 40% of such pre-retirement income, leaving a shortfall of over $39,000 per year. Just 8% of households approaching retirement have the $637,000 or more needed to generate the $39,000 annual shortfall during retirement. Half of these families have a pension income expected to cover about two-thirds of the shortfall. Although planning for retirement may seem like an unachievable task, financial planner courses allow advisors to gain the knowledge and skills needed to assist in planning for their clients' future finances accordingly. Both your household and your parents will be taken care of, without worry. By seeking the assistance of a certified financial planner, you will discover how to best prepare for your family's future!
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