How are you prepared for what will happen if your aging parents run out of money? What happens if you run out of money and you don’t have enough to pay the bills each month? How would you feel? How would you cope? How easy would it be for you to go back to work? What would your options be to raise money in old age?
Having money problems can cause an overwhelming amount of stress for people. Nobody wants to see their parents struggle with being short of money. You may just want to preserve your parent’s dignity. It can also be an enormous wake – up call for yourself to put more aside into your retirement savings as happened to Becky Keuker when her grandmother ran out of money.
These are the questions you need to be asking as they are coming true for some family all too often. What are the options out there when things get tight?
- You could sell stuff – the kids do not want your old stuff anyway
- You could go back to work – a remote possibility but do you really want to?
- Start a home business – ok that could work if you are healthy
- Trade the stock market – can work for some people but you need money
- Home owners – can downsize to free up capital
- Home owners – can borrow against their home it is called a reverse mortgage
- Apply for charity – church’s supply food parcels
- Families – may be able to get help from a relative
- Take in a lodger – rent out a room
If you take a step back and examine your options logically there could be some simple solutions right under your nose. What we want for our aging parents may be compromised by the drain on the purse with the reality of longevity. Many Baby Boomers are supporting their againg parents to some degree.
When your funds are low then being able to generate a bit of extra income coming in may be just what you need for peace of mind. Knowing getting low on funds may be a possibility is a great motivating force to look at all the available options to suit your circumstance.
A report by Australian Unity says only 30% of pre-retirees said that were making extra contributions to their superannuation. 58% of pre-retirees do not believe they have enough in their super to retire on without accessing the pension. Will you be in a comfortable position when you retire? Besides cost of living, health and healthcare costs are of great concern to the elderly. Are you prepared for the reality of Longevity?
Until next time.