Most clients in their 40s and 50s are not focused on creating an aging plan, but it’s the perfect time to bring up this conversation. Many of them are part of the “sandwich generation,” providing care for their older family members and their children. And for your clients in their 60s and older, there’s no time to waste.
Health events can change a client’s world at any time. And by about age 70 on average, approximately two out of three Americans experience some level of cognitive impairment, according to researchers. Their data comes from the Health and Retirement Study, a longitudinal study sponsored by the National Institute on Aging and conducted by the University of Michigan.
Early conversations can lead to small actions that compound into larger changes that benefit clients and you. These conversations should include aging, costs, who to involve, testing durable powers of attorney (DPOAs) before they are needed, and putting systems in place to safeguard clients’ money.
How to Approach an Aging Plan Conversation
It may feel odd discussing aging as someone is retiring in their 60s and enjoying their newfound freedom. But don’t let that stop you. It’s better to have an aging plan conversation before a crisis.
Fortunately, most people in their 60s have not yet experienced cognitive impairment or a severe health issue. Yet they’ve probably witnessed another person age and may be more open to the conversation. And aging may have already started to be top of mind for them, even if they haven’t brought this up with you. Your younger clients may also be ready to explore what to do for their parents, aunts, uncles, and other aging family members.
Bringing up an aging-plan conversation is simpler than you may think. You can approach it a few different ways.
Send an email to all clients with a news article about aging
Ask clients about a trusted contact and go further with it
Tell them an example from your own experience or someone else’s (you can use my story, which I’ll share later)
“I found this article about aging interesting. As we age, there are many considerations — health, money, community, safeguarding finances, and more. I’d encourage you to read it. What are your thoughts about it?
I’d welcome the opportunity to hear how you think about your own aging and how I can help make it a better experience for you and your family. I have a few ideas I’m discussing with all of my family, friends and clients that can help prevent some of the mistakes I’ve seen.”
An email is a great way to open the conversation. You are less likely to catch someone off guard, it plants the seed, and if they don’t respond, you can always follow up later in person or by phone.
Trusted Contact
Brokerage firms are asking people to complete trusted contact forms, which is an ideal opening for you to discuss an aging plan.
You can send an annual reminder email or bring it up during regular meetings. As part of that conversation, you can share what a trusted contact form does, but you can take it a step further to ask questions like:
Have you thought about who you’d like to help you if something happened to you and you were unable to take care of yourself? Please tell me about it.
Have you shared your durable power of attorney with the named agent and shown them how they could help with your financial life if you were unable to do it?
Which family members should I know and how do you see them helping you if I was unable to get a hold of you?
Who are the other important people in your life and what role do they play in your life?
If something happened to you and you couldn’t convey your wishes, what’s important to you (i.e. where you live, type of care, how your finances are managed, etc.)?
The trusted contact form is a small step toward an aging plan, but it opens the door for future conversations about its limits. It can also lead to more values-based conversations about what is important to your client.
Share a Personal Experience
One of my favorite ways to talk about aging plans with clients is to share personal examples of why it’s so important.
I went through a seven-year caregiving journey with my dad who struggled with stage IV lung cancer, cognitive impairment, self-neglect and substance use issues. Along the way, I had to file reports with Adult Protective Services (APS) and consult with an attorney about guardianship.
I tell clients about how my dad withdrew thousands of dollars a week from the bank to pay for drugs and the importance of having a DPOA that is effective immediately instead of springing — going into effect only once someone becomes incapacitated. I also share how early conversations allowed my mom and me to pick up the pieces for my dad when he begrudgingly let us step in at different points.
If you don’t have a personal experience, share someone else’s. You can use my experiences about the negative effects of caregiving and the lessons I learned about death and money, which I’ll share in future articles. You can also borrow stories from friends, family, or acquaintances.
The key is to share a personal story about what you are trying to discuss, such as adding a DPOA, why making an “in case of emergency” binder is important, or how to bring up what’s important to a family member. Then ask them in an open-ended way for their thoughts.
What to Discuss in an Aging Plan Conversation
It’s important to know this is not a one-time conversation. It’s also not a series of conversations. This is more than likely a lifelong conversation.
Sometimes you make headway in a five-minute conversation and that’s it. Other times, something drastic will happen in someone’s life, and they will be open to an hour-long conversation. Don’t force it. Invite the conversation.
Here is a list of topics you could discuss with clients:
What is most important to them as they age (independence, not being a burden, costs, etc.).
Where they want to age (home, adult family homes, assisted living, etc.).
Cost of care.
Who is available to provide support, including those who live locally.
Who they should talk with about their plans.
Touring different living situations to get a feel for them.
What they are afraid of as they age.
An aging plan is something that will change over time given the circumstances. It’s to be expected that the conversations will change, which means you’ll need to come back to it regularly and ask, “Has anything changed since the last time we talked?”
That question can open the door for future conversations.
Conclusion
Discussing aging is not at the top of most people’s lists, but it is a critical component of a retirement plan. It is not only for the health and physical safety of clients, but also to reduce their likelihood of falling victim to fraud, scams and financial abuse.
Most people want to control how they age, but many don’t realize they don’t have the legal documents in place or have not adequately expressed to the important people in their lives how they want to age.
As a financial planner, you are in a unique position to learn about clients’ desires as they age and to facilitate conversations to bring the right people into the conversation.
A simple invitation to your client to have a conversation may mean the difference between a good aging situation or a less than ideal one.
