Making Sure That the Senior In Your Life Is Financially Secure

It is not uncommon for the younger members of the family to take over the responsibilities of the seniors in their life as the seniors begin to age.   One of the major concerns many seniors face is their financial stability.   The individuals that are taking over the care of the seniors now have to assume this responsibility as well.

Some of the seniors are very tuned in to making sure that they are financial stable as they enter into their older years, while with others it becomes a hit and miss and they figure they will just make do with whatever money they have when the time comes.

For the young family that knows they are going to have the responsibility for the seniors, encouraging them to take the right financial steps during their early senior years is really a good move.   Quite often seniors are called upon to make many retirement decisions and when this can become a family discussion it makes it far easier on everyone in the future years. Seniors should be encouraged to start saving as early as they can which usually takes place after the young ones have left the nest.  Saving for retirement when one is young provides that much more security when the golden years arrive.

Unfortunately many individuals don’t start saving until they reach the age of 40 or over.   As an example if they were to start saving $5,000 a year starting at this age a by the time they hit the age of 65 which is classed as the retirement year their savings would amount to $283,161.

While this seems like a lot of money it has to be looked at that this is the amount that is going to be carrying them forward from the age of 65 on. If the average individual were to live to 85 for example then this amount of money would have to be divided by 20, and plus divided by two again if it is referring to a couple.

Rounding it out dividing 283,000 / 20 would give $14,150 per year for the next 20 years now taking that and dividing it by two to cover the couple would mean that each couple had $7,075 a year to live on.

When you take what looks like a large figure and break it down into what is realistic it can be most frightening as not many people would be able to live on $7,000 a year. Of course there is always pensions that can be counted on but even these are not going to bring up the amount of money to a point where a senior could say that that they are really financially secure and worry free.

There are all kinds of factors that have to be considered for the financial stability of the senior and one of the most important factors is going to be their housing. Every circumstance is different but the financial stability of the senior is really or at least should be, a family affair.

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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