Are your retirement plans safe?
In the event something was to happen to your son or daughter which left their family without any means of support, it would most likely be you who the family turns to for support.
Circumstances such as this could place serious financial pressure on your retirement funds and in turn your overall retirement plans, as it did for David and Susan.
David was 15 when he started an apprenticeship at his local steel works. Forty years later, he was still working at the same factory.
His wife Susan had kept the family ticking along, having raised four children to become independent adults with their own families.
After a company restructure was announced, David took the opportunity to ask for a redundancy and succeeded in getting a healthy redundancy package. This, together with his superannuation and accumulated benefits, meant David and Susan were sitting pretty for an early retirement.
Both David and Susan viewed this as a great opportunity to enjoy time with their grandchildren and to travel around Australia.
On Boxing Day of that year, David’s eldest son Rodney had a massive brain haemorrhage and passed away.
And because he was young and didn’t see the need for any life insurance, Rodney left his wife Erin and their three children without any means of support.
As any parent or grandparent would, David and Susan took in Erin and the kids into the family home.
The unplanned financial impact on David, Susan and their retirement plans was devastating and they were unable to do most of the things that they had hoped 40 years of work would allow them to do.
Whether you are already retired or about to retire, talk to your son or daughter about their financial obligations, and make sure they have a plan in place to protect their family’s financial future.
^Michael – Practice Development Manager