One of the most complex questions your clients in their 50s and 60s may face is this: "Should I become the main carer for my mum or dad?" While the emotional pull to step in is strong, the decision is rarely a simple financial one, and the consequences can be substantial and irreversible.
As a trusted adviser, you are in a unique position to help clients explore their choices with clarity before they become locked into a commitment.
The Financial Cost of "Free" Care
Many clients assume that providing care themselves will save money. However, unpaid care introduces a range of hidden costs and long-term financial trade-offs that must be considered.
- Lost Income: Early retirement or reduced working hours shrink a client's income, pension contributions, and future career momentum. Women are often particularly affected, with lifelong impacts on their financial resilience.
- Home Adaptations: If a parent moves in, your client may need to fund expensive conversions like stairlifts or accessible bathrooms.
- Respite Care: Every carer needs a break, which means bringing in paid carers for holidays or emergencies.
- Travel Costs: If caring from a distance, costs for petrol, train fares, or overnight stays can quickly add up and are rarely planned for.
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Modelling the Long-Term Risk
Many clients make these decisions with a focus on the next year, not the next decade. This is where your role is critical. Through cashflow modelling and lifestyle forecasting, you can illustrate the compounding impact of informal care on their long-term finances. This includes modelling lost earnings and reduced personal pension capacity, helping clients see how caring for a parent today could limit their own care options in the future.
The decision to care for a loved one is deeply personal. Your role is not to influence it, but to ensure it is made with a full understanding of its financial implications, bringing structure and clarity to an emotional process.
