Would you give up on your own retirement plan to fund your child’s education? I wouldn’t!
Would you give up on your own retirement plan to fund your child's education? Apparently, 90% of Singaporean parents would.
- None of them bought private hospitalisation or critical illness insurance
- They did not save up cash for their retirement expenses (or at least buy an annuity plan)
- They do not have sufficient CPF to rely upon for their retirement monies (my in-laws were mostly self-employed)
It was a choice between paying for mortgage, or paying to support a baby (our pregnancy expenses aren't cheap either).
Obviously, we went with the latter upon finding out I was pregnant.
And apparently, I'm not the only one. According to a recent news article here, 92% of Singaporean youths do not feel confident about supporting their parents financially as well. The infographic provides a few key points which I wanted to discuss as well:
It was surprising for me to learn that 90% of parents said they would give up their retirement savings for their children's needs. As loving as this gesture may seem, there is a hidden cost down the road that I feel many parents may not take into consideration when they're this self-sacrificial : they end up putting the burden of funding their retirement onto their children.
I say this because this is the situation my husband and I face today. He's an only child and his parents have no retirement cash savings, as they lovingly gave him the best and today, they live paycheck-to-paycheck. I'm the eldest child of two and my parents are in a similar situation, because they failed to plan for their retirement. Today, I face the stress of being my parents' retirement fund.
Are YOU your parents' retirement plan?
Are your kids YOUR future retirement plan?
It is time we changed that.
But as the saying goes, blood runs thicker than water.
If parents do not plan for their own retirement, the burden of retirement expenses will eventually fall back onto their children, thus limiting the choices they can make for their own life (due to limited monetary resources). Will CPF Life payouts be enough? I highly doubt so, for it is only meant as a basic safety net. With cost of living and healthcare going up, you'll be fine if you're healthy even in old age, but damned if you're not and have no spare cash to pay the bills.
Guess who will have to pay the hospital / healthcare bills and living expenses for retirement then?
That's right, your children.
This is the plight that our sandwiched generation face : having to split our resources between caring for our parents and our own children. And at the rate our wages are increasing (I'm being sarcastic), how can we keep up?