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How To Support Your Parents’ Retirement Plan, Back Home

June 24th, 2019

How to support your parents' retirement plan, back home

It is likely your parents have toiled their entire lives to ensure the best for you. You may have seen them make sacrifices in life and prioritise your needs over theirs. Now that you have a stable job and steady income, you can help your parents figure out their retirement plan effectively. Here are some tips:

Start the conversation 

Your parents may be close to retirement, ask them if they have specific post-retirement dreams. Speak to them and understand if they would like to travel abroad or own a new car, or a house in your native town. Once you are aware of their aspirations, you can start planning to achieve those goals. Even though you are independent and earning well, your parents would most likely not want to burden you with their wants. But you can convince them and help them out, as they did with your dreams.

Budget your expenditure 

The first step towards planning your parents’ retirement would be to create a budget for yourself and adhere to it. Categorise your expenses and figure out a way to cut down on miscellaneous expenses that you can do without. Most importantly find a way to reduce your spending on basic essentials by taking advantage of deals and offers available on food or shopping apps. Once you have a plan in place, you can start saving more to fulfill your parents’ retirement aspirations back home.

Invest the surplus 

As a practice, set aside some of your savings every month to invest in equities. You could either invest directly or through mutual funds, which are expected to yield high returns and will help you fulfill your long-term goals. For instance, after ten years if you are keen to have your parents settle down in a plush gated community, you need to start building the corpus for it right away.

Get them insured 

Insurance is an important aspect of investment when it comes to personal finance planning. Ensure you do a thorough research in order to get an insurance plan that yields maximum retirement benefits to your parents. Focus on buying health insurance plans for your parents in case they don’t already have one. Or you could top up their existing health insurance policies to avoid paying extra on premiums.

Send money home

Why wait till their retirement? You can start sending money to them every month so that they can fulfil their short-term needs. For instance, they may want to travel to places within the country. If such plans do arise and your parents happen to discuss them with you and you want to finance it, don’t worry. You could use Xpress Money’s services to transfer money quickly and conveniently so that your parents don’t have to compromise on the little joys of life.