Bankrate and Barron’s used different angles to address retirement planning issues for parents:
Half of parents financially helping their adult children say it’s putting retirement savings at risk:
“Bankrate asked Americans at what age they thought a person should start paying for their bills. Most of the results dovetailed the traditional mindset that 18 is the golden age of adulthood — except when it came to big-ticket items.”
And the article goes on to throw out terms like “coddling” and “helicopter parenting.”
Barron’s says, “Don’t have children. Just buy long-term care insurance. It’s a lot cheaper. And you have some assurance it will actually turn up when you need it. Every state has an insurance regulator that does its best to keep insurance companies honest. But there are, as yet, no regulators for kids.”
Barron’s adds that given the cost of raising children (to the official age of adulthood and beyond), you should not have children for financial security. Instead, you can opt to manage your finances in such a way that “you may not have to spend your golden years resenting your children.”
Bankrate’s statistics on the numbers of adults who are sacrificing their retirement savings to help adult children are in indication that there may be a number of seniors facing troubles in retirement.
You have have heard this idea before: as they tell you on an airplane, you have to put your own mask on first before you can help others. If you deplete your retirement savings to help an adult child who doesn’t manage to find financial stability, that money will be gone. Your child may or may not be able to help you in the future if you need it and you will have put your own financial security at risk.
And if you need an impartial third party to help you examine your finances and retirement outlook, a Fee-Only financial planner can assist.