Looking after parents

[DrewChan]

Is anyone else in this boat? My folks are in their early 60s and never really prepared for retirement. What can I do to start alleviating the financial implications this will have on me?

They have fixed assets worth around 1.5 million (Well my dad does)- although this is tied up in a house with illegal alterations.

Guessing first thing is getting them onto medical aid... advice anyone?

 

[Beachless]

Medical aid for people their age is pretty pricey.

I might be in a similar position but for 3 people I'm just hoping for the best and planning for the worst.
I'm investing a good chunk of money a year as well as buying a flat and hopefully another flat or 2 in future.
If things work out with their finances I'l have some solid investments if they dont they have a place to stay for free.

It can be quite a burden though planning for other people who lacked to plan for themselves.

 

[akescpt]

i would get a complete financial picture. like stuff on your moms side, etc. even if there nothing, you need to get a complete picture. 1.5mil is alot of equity in the house. something to work with at least.

 

[ToxicBunny]

If they aren't on med aid already and they're 60+ you are going to pay a hefty penalty for them to be on one.

First things first, get the illegal alterations legal.. get plans passed..... then at least you can realise some of the equity in the property.

 

[AlmightyBender]

Get them working again if possible. Even the smallest bit of extra income makes a difference and being productive rather that sitting at home doing nothing in retirements is also generally better.

 

[wmurray]

Turn the house investment into capital, invest the capital into something that will generate a passive income so that you do not dilute their savings into monthly living expenses. Find a place that generates good rental returns and invest the money into property, there is several places like that in SA. Look for large construction towns, best rental returns as there is a huge demand.

 

[DrewChan]

They are both currently working - live far from me - this is more pre-emptive - can't see my mother working for more than another 5 years - my dad perhaps less (His work is physically challenging).

Main fear right now is one of them getting seriously injured -

 

[hsmnel]

If they aren't on med aid already and they're 60+ you are going to pay a hefty penalty for them to be on one.

First things first, get the illegal alterations legal.. get plans passed..... then at least you can realise some of the equity in the property.

Mine paying about R4500/month at discovery for medical. They also only got their first medical aid after age 60 being farmers.

 

[rrh]

Is anyone else in this boat? My folks are in their early 60s and never really prepared for retirement. What can I do to start alleviating the financial implications this will have on me?

They have fixed assets worth around 1.5 million (Well my dad does)- although this is tied up in a house with illegal alterations.

Guessing first thing is getting them onto medical aid... advice anyone?

• If they haven't already done so, if they qualify register them for an old age pension (see URL below).
• If they haven't already done so, if they qualify register them as pensioners with their local municipality. One normally gets reduced rates etc.
• If they haven't already done so, if they qualify register them as pensioners with Telkom. There are concessions available to pensioners.

When it comes to medical aid:

• There are a number of medical aids with schemes specifically for pensioners.
• This might sound crazy, but have you visited their closest state hospital ? While most are horror-stories, my late mother retired to the KZN South Coast and her local hospital was spotless, with adequate doctors etc. - and conveniently close by.

Finally, if your property is large enough and you could live with your parents being very close by, considered building a cottage for them to live in, the cost of which could be subsidised by the sale of their house.

Old age pension: http://www.services.gov.za/services/content/Home/ServicesForPeople/Socialbenefits/oldagegrant/

 

[DrewChan]

• If they haven't already done so, if they qualify register them for an old age pension (see URL below).
• If they haven't already done so, if they qualify register them as pensioners with their local municipality. One normally gets reduced rates etc.
• If they haven't already done so, if they qualify register them as pensioners with Telkom. There are concessions available to pensioners.

When it comes to medical aid:

• There are a number of medical aids with schemes specifically for pensioners.
• This might sound crazy, but have you visited their closest state hospital ? While most are horror-stories, my late mother retired to the KZN South Coast and her local hospital was spotless, with adequate doctors etc. - and conveniently close by.

Finally, if your property is large enough and you could live with your parents being very close by, considered building a cottage for them to live in, the cost of which could be subsidised by the sale of their house.

Old age pension: http://www.services.gov.za/services/content/Home/ServicesForPeople/Socialbenefits/oldagegrant/

Thanks for the advice

Funnily enough they live on the South Coast- I really hope you're not referring to Sheppie hospital

 

[Aghori]

Your parents raised you to be the man you are today so you best take good care of them or else karma is gonna bite you in the ass.

 

[SoulTax]

Your parents raised you to be the man you are today so you best take good care of them or else karma is gonna bite you in the ass.

A real man doesn't need the fear of made up **** to motivate him to do the right thing.

 

[Nerfherder]

They are both currently working - live far from me - this is more pre-emptive - can't see my mother working for more than another 5 years - my dad perhaps less (His work is physically challenging).

Main fear right now is one of them getting seriously injured -

Rent out the house... put them in a flat.

 

[Aghori]

A real man doesn't need the fear of made up **** to motivate him to do the right thing.

For every action there is an equal and opposite reaction.

 

[DrewChan]

Hey ass-hats stop derailing my thread -

Renting house out was the route they were going to take-

House plus 3 flats = 14k-ish per month.

 

[senyetse]

And people are saying, why worry about the future, enjoy while you are young...

I'm in the same boat although quite a bit worse with MIL. Debt is sky high with no way of ever really paying it off - creditors are circling...the house will probably be repossessed soon. No pension. No savings. Keeping up with the Joneses was always more important. Now the Joneses couldn't give a ****.

 

[senyetse]

Anyway, we're thinking of converting the garage to a granny flat.

 

[SoulTax]

For every action there is an equal and opposite reaction.

And yet Newton had nothing to say on the philosophical implications of his 3rd law.