Considerations When Planning For Retirement

Baby boomers have been told to save for their retirement while they are still young. A surprising study has recently found that saving for your own retirement may not be enough, as there is a good chance that you may also have to save for your parents. This study has found that family members caring for an aging parent or spouse spend approximately 10 percent of their household income on this care. According to the National Alliance on Caregiving, things such as groceries and household goods, drugs and medical co-payments, and transportation are the most commonly purchased.

Spending was broken down as follows: $183 each month on household goods and food for their family member(s), $128 on transportation, $337 on medical co-payments and drugs, $107 on clothing, and $316 on home repair and maintenance.

What are the answers?

Tax deductions, tax credits and other stipends. As the crisis of paying for seniors grows, government will need to step in to help. Plans to offer tax deductions, tax credits or other forms of financial relief have been introduced, but unfortunately have been stalled in congress. Speak to
your local politician to urge them to move forward with some sort of answer to this problem.

Better financial planning for both seniors and their children. Financial planners have been trained to help plan for you retirement. With the information from this recent study, needs have changed and planning to contribute for your parents in addition to your own retirement savings should be discussed. If you do not have a financial planner, you should seriously consider getting one.