OLD folks in general live longer these days thanks to medical advancements, so it’s important for young people to plan early for the long haul in terms of their parents’ retirement.
Here are five things you should consider:
1. Start the conversation early
Chances are, your parents won’t want to burden you with talk about their retirement. But an article on Forbes.com says it’s a conversation you should have as early as possible. There are a lot of details that need sorting out, and the earlier you start planning for them, the better it is for everyone. Ideally, you should also seek advice from a financial planner so you don’t leave anything out.
2. What’s your parents’ medical insurance like?
Financial planner Yap Ming Hui says medical insurance should be one of the first things children invest in for their parents. It can make a huge difference later on if your parents require expensive medical care, and it won’t cost too much if you have a few siblings to split the premium.
3. Prepare for the worst
Your parents may be healthy now, but you should always plan for the worst-case scenario. Plan to save enough money in case they develop a serious illness. It’s something we don’t like to think about, but we just have to.
4. Plan for the best
In an ideal situation, your parents should also be able to enjoy hobbies and activities during their retirement. Don’t just plan for them to have a place to stay and enough to get by. Remember that they need – and deserve – to enjoy their retirement as well, and that means extra cost.
5. Put your finances first
In the current economic climate, Yap recommends young people focus on saving money, period. Forbes.com also tells young people to plan for their own lives first, and simply consider their parents’ welfare in any decision.
For example, you should plan to buy a house – but at the same time consider whether it has room for your parents to one day move in.