New research by super fund REST has found younger people are concerned about their financial future and worried they will have to support their parents in retirement.
REST surveyed 1000 people between the ages of 18 and 34 – the group known as the ‘Millennials’ – in early 2016 and found 30 per cent said they were concerned they would have to give up work to look after their Baby Boomer parents.
While this finding is troubling, there are plenty of steps Baby Boomers can take to help ensure they can fund their own retirement.
Building a retirement nest egg
Superannuation remains one of the best ways to build retirement savings. If you’re still in work, think about making voluntary contributions to your super fund over and above the super guarantee. Doing this will help to build your nest egg, and at the same time help reduce your taxable income.
Ensure you have insurance
Another way to help secure your financial future is to put in place insurances so that in the event you do suffer an accident or illness, you can still pay your bills.
There is a range of different types of insurances that can help you to do this. Income protection insurance will pay out if you suffer an accident or illness and cannot work for a period of time. You might also consider taking out trauma or total and permanent disability cover, which will pay out if you suffer a serious illness such as cancer or a heart attack.
If you do have this cover in place, it’s likely you will be able to cover basic expenses while you get back on your feet again.
Finding an aged care solution
All too often, people leave it too late to plan for a time when they are not able to live in their own home anymore. Often, elderly people put this off and when the time comes, it falls to their children to find a solution.
To avoid this, talk to your financial adviser about what your options are, including remaining at home and receiving at-home care, so that when the time comes, you won’t have to rely on others to make decisions about your aged care accommodation needs.
The earlier you start to focus on building your wealth, the better your outcomes will be in retirement and the less chance you will be a financial burden on your children. To find out how we can help build a stronger financial future for you and your family, please contact us today.