How do you plan for old age if you are childless ? - Seedly
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Jia Hui

Asked 2w ago

How do you plan for old age if you are childless ?

Im in my late twenties and got married not too long ago. While my husband and I would love to have children, I can’t help thinking what if we end up not having any and then how do we plan for old age. In the asian society, children are thought to be like a ‘safety net’ for elderly parents but not in all cases esp for current gen. It also doesnt mean you need not plan for old age if you have children to fall back upon. So what are your thoughts or plans ?

JH
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Hi anon,

There are plenty of things that you can do in old age, although that does require one to be in good health too.

You could do volunteer work. Start a side business purely for the fun of it. Travel the world. Binge watch netflix (if its still around). Write a book about your life experiences. Go back to school to learn. Just sit at home read books. Start a foundation, start a trust, contribute to a charity. The number of things one can embark on are quite endless

However, all that is only really possible if you have the means to do so. And that means you need to be able to have income. Income that 1) Pays the bills 2) Feeds you and your husband, and 3) Provides you with the spare cash and the safety net to try a new endeavour, knowing that if you fail, you still have money to try something else on your bucket list.

While I cannot advise on what you should do in retirement (I am not a life coach after all), I can say that you will probably want the income to achieve this. So work towards growing your wealth (whether you are a growth investor or an income investor, whether you prefer guaranteed or non-guaranteed income, that is up to you). When you are closer to retirement, ensure that your assets produce income, and that you have multiple streams of income.

Perhaps the last thing to do if you ever find yourself with income streams that won't run out for your forseeable lifespan, is to just start a foundation, trust or education endowment, so that you and your husband's name will live on in perpetuity while you empower the future generation.

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I’m in my mid thirties, married with no plans to have kids. I think children provide an emotional safety net in old age to combat loneliness and give life more meaning. But they don’t represent a financial safety net.

Whether or not a couple has kids, they should try to prepare themselves financially for old age. Because it’s not always possible to rely on grown children to support us and themselves.

I recently started reading about FIRE (Financial Independence, Retire Early). Whether or not you’re planning to retire early, I think the basic principle of planning based on your basic expenses is a good way to start.

Meaning that the lesser your expenses, the longer your money will go.

Look at your expenses - how much of these may evolve as your lifestyle changes towards retirement? You may spend less on consumer goods and dining out, but you’ll need to spend on health and wellness.

Look at your health - do you eat well, exercise regularly? Have adequate insurance and hospitalisation plans?

Start working out an idea of the sum you need for retirement so that you can work towards that. Review it every half year based on your needs and life changes.

Hope this helps!

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Hi Jia Hui,

In my personal experience, some couples made the decision not to have children in their course of the relationship and some have.

In the event you choose to not have children, financial planning would be easier for the both of you as the sole focus will be on self-sufficiency post-retirement, as well as good insurance coverage to ensure minimal financial liability in your latter years.

Having children often complicates financial planning as the variance is too high in terms of resource allocation, as well as a possible lack of finite resource to provide for both self and family.

On the topic at hand, the focus would be to ensure your standard of living does not drop significantly after your cessation of employment. You will have alternate sources of income, mostly passive with active income being a secondary possibility. Your income will be able to cover your expenses, while your liquidity is constantly maintained and growing to achieve your late-game goals. Honestly, the possibilities are endless if you do not have any liabilities to hinder yourselves.

Hope i was able to shed some insight on your thoughts!​​​

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Enjoy life, travel around the world while still young since you have no liabilities. Keep some money for retirement so you can self sustain

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