Retirement Planning for Childless couples
- Do they need more Corpus
- Do they need less as compared to couples with children
Many couples who do not have children think that without the cost of raising children, they will need less money in retirement and they can retire early. They also will not have to spend for grand children
In fact child-free couples have to face a different set of financial goals, risks and priorities, and, ironically, may need a larger retirement corpus.
The biggest risk is miscalculating the cost and complexity of ageing. Child-free couples need to ask practical questions early:
1. Who will step in if they can no longer manage on their own?
2. They will be dependent on some other person obviously
3. There is financial implications also
4. As they grow older, they may need nursing support, assisted living, specialized medical care or a full-time caregiver.
5. For many child-free couples, each partner is the other & primary caregiver.
6. If one is no longer able to provide that support, the substitute is often money—a corpus large enough to pay for care when needed.
7. Parents with children know that their children will help coordinate care, make decisions and, if required offer financial support.
8. Child-free couples do not have that safety net.
9. Their financial plan must therefore clearly provide for care, support and decision-making in later life.
Retirement planning is not merely having adequate amount of money, it also includes Non-financial aspects such as maintaining physical and mental health, pursuing hobbies, maintaining social connections and making living arrangements like moving to a smaller house, nearness to friends and relatives or may be shifting to senior citizen living homes etc.
Madhu Sinha
Dean
International College of Financial Planning