Tips for Senior Parents: Keeping Track of Retirement Plans
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Tips for Senior Parents: Keeping Track of Retirement Plans

Many senior parents still see their adult children as kids, and this view compels them to help their children when they are in financial trouble. It’s probably why many young adults moved back with their parents at the height of the pandemic.

Sadly, if your kids move back to your place, the situation might derail your well-laid monthly budget, or worse, your retirement plans. If you see yourself in this situation, you should not fret! This article will help you take control of your finances even if you support your children.

Ensure You Are on Track for Comfortable Twilight Years

You may find it difficult to follow through, but you should only give what you can afford. Before you begin spending heavily on your children, you should ensure that you stay on track with your retirement plans.

Many parents ignore their financial obligations, resulting in an insufficient retirement fund. It is one of the reasons why many retirees cannot enjoy their twilight years.

Retirement is not a distant dream. If you are already working and younger than 40 years, you are in your most productive years. Age does not matter because you can still enjoy retirement without help from your children.

A parent’s love for their child is typically too strong to cope with the guilt of not giving enough. However, it’s best to be honest with yourself. Figure out how much you will spend on rent, food, insurance, and other daily needs. Then, only give your child what you can afford.  You can use a personal finance tracking tool to help you, like this Budget Planner from MoneySmart.

The next step is to ensure your retirement plans stay on track. You could consider saving more to be prepared for the financial effects that caring for your adult children might bring if you believe this situation is on the horizon.

The best way to help your children is to ensure that you will not get into financial trouble in your retirement years and old age. Studies show that becoming burdened with financial worries have many negative flow-on effects to your home life, social life, physical health and mental health. .

Find Out Why They Need Your Help

Before you dish out money, it is essential to determine why your children do not have money to take care of themselves. If it is because of a recent emergency, you may want to help until they get back on their feet. However, if it is a regular thing, you may want to consider guiding them to help themselves instead.

It would help to find out more about their financial situation and talk to them about what is happening in their lives. Your children may be facing more than one problem. For example, they may be unemployed and carry personal debt obligations. In this case, you may want to help them until they get back on their feet.

If your children are physically unable to help themselves, you should not hesitate to use the money to get them the necessary care.

Should You Financially Help Your Children?

It is natural for a parent to want their children to live independently. Getting them out of the house is a relief, but the responsibilities should not be handed over to you. You need to be honest, consider your financial situation, and find out why they need your help. 

If your children are living with you, there may be the potential to discuss the household budget with your children and get agreement on how much they can feasibly contribute to household expenses so that financial burden is not entirely on your shoulders.

Making your child feel independent is not always the best thing. If they cannot be independent and experience a financial crisis, you may need to provide them with the money to get them through the situation.

To ensure that your retirement plans are not derailed, you should talk to Coastal Advice Port Macquarie. We can help you stay on track with your financial goals and live your best life in retirement, so contact us now to book your complimentary first meeting!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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