Avoid becoming financial burdens on your children

The group’s Ronald King explained, “As a parent, there is little that can get in the way of your dreams for your child, but these dreams should not come at the expense of your own retirement planning.”

He said the ultimate plan was for parents to be able to look after themselves in retirement, ensuring that their child would not have to play substitute for their lack of savings.

“Scoring your own financial goals first puts your child in the best position for the future,” he added.

King explained that too many children find themselves in the ‘sandwich generation’. A term used to explain those who are caught between the financial needs of their own children and those of their parents.

“We’re living longer these days, so if both parents are older than 60, one of them will, on average, reach the age of 95,” he said.

“This means that there will be a good innings to cover financially once retirement comes. Don’t let your child become responsible for you in your golden years – start practicing better financial planning today.”

King said it was important for parents to give their child the best opportunities they could, but they needed to make the best decisions with their available finances.

“Spending money on coaches and expensive equipment at the expense of retirement saving makes you a good sport in your children’s eyes, but is equivalent to choosing a short-term benefit for your child over a long-term gain,” said King.

He believes that investing in a retirement plan first will reap richer rewards for any child’s future.

“Over and above your retirement savings, you can still provide for these extras if you can afford to, but remember that next to a good education, the most important gift you can give to your child is your own financial independence.”

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