The alternative is much worse! While it’s good to have a positive outlook on life and aim to live a long and healthy life, it’s also good to think ahead in a practical way about how life might unfold.

Observing and helping others as they age can teach us lessons about how to prepare for the last stage of life. Most of us have had parents or other close family members who have lived to a good age and have seen first-hand the issues that can arise. But in typical Kiwi fashion, it’s easy to think that somehow we will be different from those who have gone before us.

Whether you are planning ahead for yourself or taking care of an elderly relative, there are some important things to know about ageing and how it affects your financial situation.

As we get older, it becomes harder for our brains to process information. Filling out forms becomes a nightmare, and understanding directions or instructions is very confusing, especially if they are in writing. The signs of inability to cope include piles of mail that haven’t been attended to, confusion about whether bills have been paid or not, inability to recall where money is invested or how much is invested and, in some cases, giving money away inappropriately.

As you get older, it’s a good idea to keep the number of bank accounts you have to a minimum. Ultimately, you should have one transaction account, one savings account, and a couple of term deposits. While it’s tempting to chase higher interest rates at other banks, keeping your affairs with one bank makes life a lot easier. Make arrangements for bills to be paid by direct debit or automatic payment.

If you know that you need a certain amount for bills and day to day living then, knowing where your regular income will come from today and in the future is important. This is what Lifetime Retirement Income specialisies in. They have a range of income solutions for retirement that pay each fortnight the same week as New Zealand Superannuation, including incomes through to age 100. 

Keeping on top of paperwork is vital. Late in life, this is best done with some help, as it can be challenging for an older person to know what is essential and what isn’t. The main thing is to make sure paperwork doesn’t build up to a stage where it is unmanageable or in so much disarray that it’s hard to find anything. Set up good systems for managing paperwork while your brain is still agile. Important documents such as wills, insurance policies and enduring powers of attorney should be kept together in a safe place that is known to at least one other trusted person. However, don’t forget about these documents because they need to be updated from time to time.

As we age, our social networks diminish and loneliness can set in. Later in life you may no longer be able to drive, and using public transport may not be an option. Even basic tasks like doing housework and cooking meals can require more energy and co-ordination than you have. If your wish is to continue to live independently, you may need to set aside funds to cover home help, taxis and increased health care costs.