Photo credit: uofmhealth.org
It is true that early planning gives both children and parents peace of mind especially when it comes to the future.
Planning ahead makes things easier for the family especially for the children who have plans on settling down in the future. When you started work, the best thing to do is to plan about your funds for the next 10 or 20 years and invest to maximise the money in the early part of your working years.
According to Straitstimes news, two young men have taken financial planning for their parents retirement as well.
“Mr Ibnu Firdaus Nooraman, 28, the youngest of four siblings, is the only one living with their parents. He started helping his mother, a 66-year-old housewife, by contributing to her Central Provident Fund (CPF) Retirement Account (RA) once he began his career as a nurse.”
He has also started making monthly contributions of $100 to her RA four years ago.
Mr Ibnu said: “I learnt about the RA from my father, who is a retired civil servant. As my mum has never worked, I thought I might as well do it, on top of giving a monthly allowance of $1,000 to my parents.”
Mr Ibnu’s parents have their own annuity plans. His father gets about $560 a month from a private plan, while his mother gets about $500, which includes a payout from her RA.
Mr. Christopher Tan, chief executive of financial advisory firm Providend said that it’s good to start thinking of your parents’ retirement. He also said that more children these days involving themselves on their parents retirement, whether partially or completely.
He also added that “Helping to plan for their retirement ensures that there is some financial stability for them, and it also gives both them and yourself peace of mind, knowing that there’s a plan in place.”
For some, it might be difficult on the idea of the role reversal. However, we as children should be concerned about our parents’ retirement plan, especially if they have not been very successful on savings/investment when they had a job or at their prime. Sometimes, our parents gave so much to us children during those years; therefore, they missed the opportunity of invest in themselves.
Planning for our parents’ retirement is a priority for everyone.
What are your thoughts on this? What kind of investment plans or saving plans you have kick start to provide a better support for your parents? Share with rest here.