facebookHelp! What can I do if my parents have no retirement savings and no plans? - Seedly

Anonymous

22 Sep 2021

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Help! What can I do if my parents have no retirement savings and no plans?

I spoke to my parents (54 and 56 y/o) recently about their savings and retirement and learnt that they have a total of $10k that sits in a savings account with no other savings or investments. My mom has been a stay home mom for most of her life and my dad is self-employed with no CPF contributions. He's not earning that much (owns a neighbourhood furniture store) so they live hand to mouth.

Some background: our hdb flat is fully paid for. And we don't have any outstanding loans to take care of. I'm only 25 this year but I'm really scared that they'll become a financial burden when I want to start my own family in the future.

What's the best way to maximise the money they have at this point their lives? Any help from the experts here at Seedly would be appreciated. Thank you!!!

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Sharon

03 Oct 2021

Life Alchemist at School of Hard Knocks

Just some food for thought, besides what have been mentioned: Other than making plans for your parents, you also gotta think how you can accelerate your income.

Income has no ceiling, but it's a given that expenses will increase over the years due to inflation.

What type of job doesn't give you a cap in income? Business owners, sales, those in management positions, or even a non-traditional "job" that gives immense value to others e.g. YouTuber, Tik Tok influencer.

Hi, firstly i'd applaude you for making the first time to make considerations in planning for your parents. I know Its not easy because i am in a similar position as you too. Both my parents are not english-educated (So limited jobs even PT jobs are not applicable). My mum is a seamstress and my dad is self-employed. Thats also one of the reason why i became a Financial Adviser. I am 26. So what i did for them is i straight away aim in reducing their risks as health problems starts arising for my mum. Reviewing at heaps of policies they bought eons ago, only to realized that my mum didnt even have any policy covering Early Stage CI. So i immediately bought 1 for her. By doing reducing their risk is also reducing yours. On top of that, my mum is the kind of person who cant save. So instead of giving her cash for allowance, i bought a 10 year savings plan to supplement both my parents' retirement as compounded interest is key to building your retirement nest too, as well as impede her from using the cash that i supposingly give her. For example, if they are only covered under Medishield for Hospital plans, your cash outlay for a table 4 surgery (eg. brain surgery)would be quite hefty as its capped on 9k and hospital bills in singapore, not to mention surgery would easily be 5 digit. So even upgrading their hospital plan to a C ward (if you're budget constrained) would give you so much more financial security for you as well as them in the future. Dont worry. With even a meager amount, you can still get your parents protected financially for your sake. You can contact me @ 97100733 if you need help. I am Lucas. You're not alone in this. sending virtual hugs.

Afraid that your parents who raised you up that would become your financial burden is kinda sad...

you can start by saving for them, putting money in their CPF for them so they can live comfortably.

On the top of priority, I would think it will be important to assess if they have sufficient hospita...

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