MALAYSIA: Looking After Aged Parents

KUALA LUMPUR (Malaysian National News Agency-Bernama), June 11, 2007: Support for the elderly has become somewhat of an issue among families with parents who are old and often are no longer able to take care of themselves or live independently. It often becomes a problem when the children, due to social and economic factors, find it difficult to fulfil their obligations. As in many other developing nations, Malaysia too, has been experiencing the urban pull of a better living in big cities. Marriage rates have also dropped with more women becoming financially independent. A research done by the World Bank in 1994 indicated that during the '80s more than three-quarters of the elderly in Asia were living with their children; this number dropped to about two-thirds during the '90s. There is a high possibility that the figure will continue to decrease. Preparation Preparing ourselves to look after the elderly is a subject that is often neglected; often the children are faced with the responsibility of looking after their parents when their parents become ill. Unfortunately, it is more difficult to discuss medical care and other financial aspects if the elderly father or mother become incapacitated and bedridden. Whether we like it or not, it is best to discuss these subjects with our parents when they are still healthy so that decisions can be made according to their wishes, while ensuring that our own family is well taken care off financially. It is not easy to broach these subject with our parents but try to keep in mind some psychology elements involved. Most parents will probably react negatively whenever we make the first attempt. This is due to the fact that the older generation puts a premium on self-reliance and it is not helping matters either if they have trouble seeing their grown-up children as adults who can offer help and advice. So, it is advisable to get a person in authority such as an accountant or a lawyer friend to help deliver the message. In putting the parents' finance in order, we do not have to know every detail down to the last sen. However, we have to ensure that there are no surprise expenses that can put our parents or even our financial status in jeopardy. Information We Have to Know Here is some information that we have to know, as pointed out by the Association of Chartered Certified Accountants (ACCA) in its Guidebook on Personal Finance. * Cash and investments The best way of finding out how much cash and investment our parents have is to list down all of their income and liabilities. Income may include pension and investment; and debts include mortgage payments, medical bills and credit cards. We can do this by using any financial software available in the market or just write down everything on paper. If our parents are still working, we should also ask about their sources of income upon retirement and see whether they need any financial support from us. * Insurance or medical coverage Find out whether our parents have sufficient insurance coverage. The insurance policy should cover: - hospitalisation and surgical expenses - critical illness for the 36 diseases covered by insurance - disability income insurance - hospital income insurance for the days they stay in the hospital. * Important information related to finance and legal matters such as: - savings and current account numbers, and the passwords for ATM cards for these accounts - fixed deposit account numbers - phone numbers and addresses of financial advisor, lawyer and accountant - where the original signed copy of their will is kept - the location of crucial documents and the keys to their safety deposit box. * Beneficiaries If they have not named beneficiaries for their EPF, insurance and other investments, remind them to do so. This is to ensure that the monies go to the persons whom your parents wish to bequeath their money to. Advice them to update the names should their preferences or the situation changes. * Concerns pertaining to assets For instance, our parents may want to divide a piece of land in the kampung with their siblings but the plan has not taken off. So, we have to ensure that it is done properly. They must be reassured that their wishes are carried out should they be unable to do so. Once we have all the information we need to know about our parents' financial position and their retirement plans, we need to do the following if they have not already been taken care off: * A written will The most important thing is to make sure our parents write a will. This will save the family from legal battles over what is left behind by the parents. Without a will, the assets will be distributed according to Distribution Act, 1958, and for the Muslims, the fara'id will take precedence. * Ease financial burden If our parents are having trouble meeting monthly payments, we can offer ways to ease the burden. For instance, we can help set up standing instructions so all the bills will be paid directly from our parents' accounts, without their having to go to the bank. Teaching them on-line banking facilities will also be helpful. For parents with huge debts, we may consider helping to pay for that as well. * Family emergency fund If we see the need for extra money to cover for future expenses, we can set up a family emergency fund where everybody in the family makes monthly contributions. How much a person should contribute depends on their income and financial responsibilities. Make sure the fund is taken care of by a trusted individual in the family. Now that we have everything in order, we do not have to worry about their financial needs. This is perhaps the biggest contribution we can give to our parents. So, no matter how busy we are pursuing our own agenda, make sure our parents' welfare is well taken care off. By Rosliwaty Ramly Copyright ©2007 BERNAMA. All rights reserved.