I fear my parents, on CPP and OAS, could go into debt. How can I help?

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How can I help?Mary Castillo: CPP and OAS cover basic living costs for many seniors, but rarely much beyond thatLast updated 26 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Canada Pension Plan and Old Age Security cover basic living costs for many seniors, but rarely much beyond that, writes Mary Castillo. Photo by Getty Images/iStockphotoWe independently select everything we recommend. Buying through us may earn us a commission, which supports our work.Q: My parents are in their late 70s and live on Canada Pension Plan and Old Age Security income. Whenever I bring up their finances, they change the subject or tell me not to worry. I love them and do not want to overstep, but I worry they do not have money saved to cover an emergency or a health scare and might go into debt. How do I start this conversation without making them feel judged or that they will lose their independence? —DianeTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountFP Answers: Many adult children understand exactly how you feel. Their love for their parents is mixed with hesitation about crossing a line that has never been crossed before in the family. That discomfort is normal, and it does not mean the conversation is off limits. It simply means the approach matters as much as the message.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA family meeting announced in advance can feel like an ambush for parents who value independence, and it may trigger defensiveness before anyone has even mentioned money. Instead, look for a natural opening such as a news story about a scam targeting seniors, a friend’s parent moving into assisted living or even your own retirement planning. Saying that you recently updated your will or beneficiaries, then asking whether they have done the same, can be a low pressure way to broach the topic.Keep the first conversation narrow. You do not need a full picture of your parents’ savings, pensions, debt and expenses in one sitting. Look for an opening that respects their pace and ask just one specific question. For instance, asking whether they have an updated will and power of attorney is concrete, practical and far less likely to feel critical than asking whether they have their debts under control.Power of attorney and estate documents are useful entry points for another reason. They focus on planning and protection rather than on whether someone has enough money. They can also reveal whether important decisions have already been thought through, such as who would step in if help were needed and how your parents would like to live as they age.Expect the subject to come up more than once. Parents who have spent decades managing their own money rarely share all of that information the first time it comes up. Rather than trying to understand everything at once, focus on a few practical details. Do they have legal documents, including a health care directive, in place? Do they have enough cash available to cover an unexpected expense? Does someone know where important documents are kept? Answers to those questions can provide reassurance and help identify any gaps that need attention.If your parents do open up and the numbers are tighter than expected, do not panic. CPP and Old Age Security cover basic living costs for many seniors, but rarely much beyond that, so a modest shortfall is common and often manageable with a plan. Seniors with a low income may qualify for the Guaranteed Income Supplement, a tax-free monthly top-up. Your parents can verify their eligibility on the federal government’s free benefits estimator. From there, a budget built around their real income and expenses can go a long way, and a financial planner who works with seniors can help sort out what is realistic without adding family tension to the mix.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Waiting rarely makes this easier. The longer these conversations are avoided, the more likely it is that a health scare or another crisis will force decisions under pressure. You do not need every answer right away, but for the sake of your own planning, you need a clearer picture of whether your parents have the resources, documents and support they would need if something unexpected happened.Do you have a debt question for FP Answers? Email wealth@postmedia.com.Mary Castillo is a Saskatoon-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt since 1996.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.