Talking to your parents about money can feel awkward. After years of taking care of you, they may not find it easy to accept help with their finances. But as they get older, managing bills, protecting savings and planning for future care can become more challenging.
The goal isn’t to take control of their lives. It’s to help them feel more confident about their finances while respecting their independence.
Here are eight practical ways to help your ageing parents, whether they live in the UK or the US.
1. Set Up Legal Powers of Attorney
If your parents develop dementia, suffer a stroke or lose the ability to manage their finances, you may not automatically have the right to access their bank accounts or make decisions for them.
In England and Wales, a Lasting Power of Attorney (LPA) lets someone appoint a trusted person to handle financial matters or make health and care decisions.
In the US, a Durable Power of Attorney can cover financial matters, while a Health Care Proxy or Health Care Power of Attorney can cover medical decisions. The rules vary by state, so local legal advice is important.
It’s best to arrange these documents while your parents can still make their own decisions. Keep essential financial information somewhere safe, too.
2. Check Whether They’re Missing Out on Benefits
Some older people miss out on financial support simply because they don’t know it’s available.
In the UK, Pension Credit can boost the income of eligible pensioners on lower incomes. Attendance Allowance may also help people who need support because of illness or disability.
In the US, eligible seniors may qualify for Supplemental Security Income (SSI), Medicare Savings Programs or Extra Help with prescription drug costs. Each program has its own eligibility requirements.
Gather your parents’ income details, pension records and savings information, then check official government websites to see what support they could receive.
3. Protect Them From Financial Scams
Scammers often target older people with fake messages, suspicious phone calls and convincing stories designed to make them hand over money. AI-generated voices can make these scams even harder to spot.
Agree on a family rule: always verify unexpected requests for money by contacting the person directly through a trusted phone number.
Other useful steps include:
- Using strong, unique passwords and two-factor authentication.
- Turning on bank transaction alerts.
- Never sharing banking details in response to unexpected messages.
- Creating a private family code word to check suspicious calls.
In the UK, the free HM Land Registry Property Alert service can flag certain applications involving a registered property.
In the US, scams can be reported to the Federal Trade Commission (FTC). People aged 60 and over can also contact the National Elder Fraud Hotline for assistance.
Talk about these risks without making your parents feel embarrassed or incapable. A little preparation can help protect their money and confidence.
4. Find Forgotten Pensions and Savings
Your parents may have old bank accounts, workplace pensions, investments or insurance policies they’ve forgotten about. These assets could provide extra financial support during retirement.
Start by checking old paperwork, letters from former employers and documents from banks or insurance companies.
In the UK, the government’s Pension Tracing Service helps people find old pension schemes, while My Lost Account can help trace certain forgotten bank and savings accounts.
In the US, the Department of Labor’s Retirement Savings Lost and Found database can help locate certain workplace retirement plans. The Pension Benefit Guaranty Corporation (PBGC) also offers tools for finding certain unclaimed pensions.
These services help locate accounts or providers, although finding an account doesn’t guarantee that money will automatically be recovered.
5. Make Household Finances Easier to Manage
Bills, subscriptions and online banking can become harder to manage with age. Unused subscriptions and overlooked payments can also eat into a retirement budget.
Sit down with your parents and review their regular bills, insurance policies, subscriptions and bank statements. Cancel services they no longer need and consider automatic payments for essential bills.
If digital statements are confusing, paper copies may be easier to manage.
In the UK, parents can ask their bank about a Third-Party Mandate, which may allow a trusted person to handle certain banking tasks.
In the US, banks may offer an Authorized Signer arrangement or accept a valid financial power of attorney. The permissions differ, so check with the bank first.
Any arrangement should make life easier without unnecessarily limiting your parents’ independence.
6. Review Their Home and Property Options
For many older people, their home is their biggest asset. But maintaining a large property can become expensive, especially when repairs, bills or stairs become difficult to manage.
Talk with your parents about whether their home still suits their needs. Moving to a smaller property could free up money for everyday expenses or future care, but selling isn’t the only option.
In the UK, some homeowners consider equity release, which allows them to access money tied up in their property without moving. However, interest and fees can reduce the value left for their heirs and may affect eligibility for certain benefits.
In the US, eligible homeowners aged 62 or older may consider a Home Equity Conversion Mortgage (HECM), a federally insured type of reverse mortgage. HUD-approved counselling is required before obtaining an HECM.
Both options have important financial consequences. Before making a decision, seek independent advice and consider how it could affect future care costs, benefits and inheritance.
7. Plan Ahead for Future Care Costs
Long-term care can be expensive, so it’s better to discuss preferences and costs before a crisis occurs.
Ask your parents whether they’d prefer to stay at home with help or move into a residential care facility if they need more support. Their wishes can help the family plan ahead.
In the UK, the original source reports average self-funded care-home fees of around £1,298 a week, or nearly £67,500 a year. Eligibility for local authority support depends on financial circumstances and the applicable rules. A home may be excluded from the assessment in certain situations, including when a spouse or partner continues to live there.
In the US, Medicaid may cover certain long-term care services for eligible people, depending on state rules and financial circumstances. Medicare generally doesn’t cover ongoing, long-term custodial care. Certain asset transfers can also affect Medicaid eligibility under rules that include a five-year look-back period for relevant long-term care benefits.
In both countries, seek specialist legal advice before transferring property or giving away assets to reduce care costs. It’s also worth reviewing your parents’ wills after major life changes.
8. Create a Simple Budget and Emergency Fund
One of the easiest ways to reduce financial stress is to help your parents understand exactly how much money comes in and where it goes.
List their regular income, including pensions and other benefits, alongside essential expenses such as housing, utilities, food, insurance and medication. This makes it easier to spot unnecessary spending and identify any gaps between income and expenses.
If their budget allows, help them build an emergency fund for unexpected repairs, medical expenses or other urgent costs. Even small, regular contributions can make a difference over time.
Keep the plan simple and review it together every few months. If their income or living costs change, adjust the budget accordingly.
The aim isn’t to control every purchase. It’s to give your parents a clearer picture of their finances and help them feel more prepared for unexpected expenses.
The goal is simple: help your parents feel secure about their future without making them feel they’ve lost control of their lives.
