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  • Ernest Ademola Ehigie

How to Support Your Parents in Retirement Without Going Broke

Having a great financial plan for yourself comes with a sense of fulfilment. However, when this is not the case for your loved ones, the feeling soon dissolves into guilt because you feel responsible for them. It is common for young people to feel responsible financially towards parents that are lagging in retirement. And this can negatively affect their finances in the long term if there is no proper plan. This trend keeps some families impoverished for a long time, as one generation is always trying to bail out the previous generation and neglecting their own financial security.

In some cases, helping parents hinders young people from pursuing their dreams, because they only focus on making money.


So, the question is, are there ways young adults can avoid self-sabotage in retirement while they still help their parents? This article provides a few answers to this challenge.


Create a plan

Supporting your parents is usually a long-term approach, especially when they do not have a retirement plan. So, pick a sum that will be sustainable for the long term.


For married folks, ensure to carry your partner along with this plan to avoid resentment from one side, especially if the other partner’s parents are not as dependent financially as your parents.


Also, have an idea of how much financial support you will be rendering them while including your current living expenses, retirement, and other obligations.


Note that it is not out of place to offer financial advice to your parents. Having a good picture of their current financial status is essential. While some family cultures may not subscribe to strict scrutiny of how they spend their money, you can educate them on having a budget, and sticking to it.


Encourage them to set up a system for accountability and keep the lines of communication open. This way, you can help manage their finances to prevent their situation from getting worse.


Also, engage other siblings to join you in this process, and in a case where they are not financially buoyant, they can provide other forms of support to your parents.

Supporting your parents is usually a long-term approach, especially when they do not have a retirement plan. So, pick a sum that will be sustainable for the long term.

Your Retirement remains your priority

The temptation is always to sacrifice everything to ensure your parents do not suffer. However, you still have a duty to secure your future to avoid repeating the cycle with your children in retirement.


While you create a long-term plan to support your parents, ensure to save for retirement. As tough as it may be, you have to focus on your retirement plan first. Endeavour to pay yourself first from whatever incomes that come in.


Open a high yield savings account and save a particular amount every month. The best way to go about this is to deduct a certain percentage from your monthly or regular income. Pretend this amount is another monthly bill that must be paid, so you won’t feel tempted to spend it. This helps to create a system of consistency and encourages the discipline of saving.


To save for retirement, open a Retirement Savings Account (RSA), and have 10% of your income go into your RSA. Your RSA is money set aside from each paycheck and deposited with a Pension Fund Administrator (PFA) for a financially stable life in retirement. For more information on RSAs, contact Oak Pensions via www.oakpensions.com, info@oakpensions.com or call the Marketing Manager on 09087448661.

The temptation is always to sacrifice everything to ensure your parents do not suffer. However, you still have a duty to secure your future to avoid repeating the cycle with your children in retirement.

Check what benefits your parents qualify for

Look out for incentives in tax, healthcare, and food assistance discounts for senior citizens. Depending on your family’s cultural preference, some seniors and their adult children might be reluctant to rely on public assistance, whether for philosophical reasons or quality of life. However, it’s not out of place to explore any opportunity in that direction.


You can also leverage some welfare packages provided by some communities like churches, clubs, mosques etc.


Don’t stay too far away from professionals

While there is no magical solution to supporting your parents in retirement, a piece of professional advice can save you a lot of stress. Ensure you seek professional advice from financial experts. A professional will be able to identify ways to maximize your investment and guide you in ways you can increase your pension and investment strategies. Our door is always open to you at Oak Pensions, you can reach us via any of our communication channels.





 

ABOUT THE AUTHOR:

Ernest Ademola Ehigie is a Copywriter, Content Developer, Author, Brand Consultant, and Communications Manager with over 5 years in marketing communications. He has written several articles, policy documents, press releases, radio and TV adverts for businesses and organizations. He's the author of the book, "Why You Must Lead" and currently works as a content manager for Detail and Avedia, a leading retail and media consulting firm.


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