Skip to content
Scotia Wealth Management

The importance of having a contingency plan as a senior

July 2, 2019

She is a widow in her 80s whose husband died several years ago. After he died, she sold the family home and moved into a condominium that she decorated in a colourful style that “I could never have gone with while Bob was alive.” Every day, she walked to the local market to buy groceries. She also went to classes at the local fitness club twice a week and had a busy social calendar of friends and family. Whenever we talked, she had the mental acuity and confidence of a 35-year-old.

Yet, over the last few years, every time I met with her or talked to her on the phone, she mentioned the pressure she is feeling from friends and family who tell her she should sell her condo and move into an assisted living facility.

“I feel perfectly fine,” she would say. “I don’t fall down, my memory is good, and I love living in my condo. The property services are taken care of. I don’t see why I need to change how I live just because everyone else is worrying about it. I feel like they just want to lock me up in one of those homes.”

The first few times the conversation came up, I just supported her position and said things like, “You need to do what’s best for you.” But during a recent call, I took a different tack and engaged her in a conversation not about her current situation, but about her future.

Yes, everything is fine now, but what will she do if something does happen? Doesn’t it make sense to have a contingency plan in place in the event that her circumstances change? I said things like, “What if you did have a fall? What if it starts getting more challenging living on your own? What if you wake up one day and decide you want to make a change? You don’t want to regret that you didn’t have a plan in place when you might need it.”

During that first conversation, she didn’t say much. But when we talked the next time, I could tell she was thinking about it. And then, during the next call, she said, “I talked with my daughter about what you said about contingency plans. I think I’d like to understand what you meant. How exactly would we do that?”

I explained that putting a plan in place wasn’t the same as making a change to how she was living. It just meant having options if they were ever needed. For example, I explained that there are often long waiting lists for quality assisted living facilities. Also, it’s important to do the financial projections to ensure that you can afford that kind of care.

I suggested that she talk it over with her daughter and let us know when she was ready to put a contingency plan in place. Three weeks later, she called me back and asked me to go ahead and make a plan for her.

Working with the team at Dri Financial Group and some of the experts from other departments of Scotia Wealth Management, we got to work. We helped her update her Will and made sure she had a Power of Attorney in place for financial and medical decisions. We then made sure that her Executor knew about these plans.

We also helped her draw up a contingency plan that projected the financial implications of her potential future living circumstances, including consideration for the windfall she would receive when she sold her condo. Then we gave her some direction about how she could work with her daughter to assess assisted living options to decide which waiting lists she would put her name on.

A few weeks after the plans were in place, she showed up at our office with a basket of blueberry muffins she had baked to thank us for our help. “You are such a dear,” she said to me as I bit into one of the muffins that were still warm. “Now, when they bother me with questions about how I live, I just tell them I have a plan!”

Planning and careful attention detail are critical for ensuring that you will be able to live on your own terms for as long as possible. Contingency planning and advice about how to prepare for future possibilities are just one part of the ongoing services and support we offer.

It all started with a phone call.

If you have questions about how to create a contingency plan that’s right for you and your situation, please give us a call at 416.355.6370.

Follow us on social.

Facebook

Twitter

LinkedIn

Read more by Dri Financial Group

Legal

This publication has been prepared by Scotia Capital Inc. and is intended as a general source of information only and should not be considered as personal and/or specific financial, tax, pension, legal or investment advice. We are not tax or legal advisors and we recommend that individuals consult with their qualified advisors before taking any action based upon the information contained in this publication. Opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither Scotia Capital Inc. nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of Scotia Capital Inc.