Looking ahead to your retirement has probably been something that you’ve planned for for decades. You’ve invested in the right accounts, charted out what you might need to support you through older years and consulted with a financial planner and estate planner on a regular basis. A new study conducted by Merrill Lynch identified that nearly half of Americans aged 50 and beyond will overextend themselves financially in order to enable their children to obtain a more comfortable life.
While this may give you greater peace of mind that your children have access to resources that will assist them as they begin their working career, this can also jeopardize your ability to have enough funds in savings to support you through a long and healthy retirement.
Given that many people may also face a long-term care issue at some point after age 65, it is imperative to realize that there may be better ways of passing on assets and enabling your children to receive support. The study identified that parents who are in the retirement phase of their life are giving their adult children up to $6800 per year in order to enable the adult children to live more comfortably.
Nearly 80% of the survey respondents said that they felt that this was the right thing to do. Adult children were the ones who received the most help from a retired family member when compared with parents, siblings, and grandchildren. If you have questions about the best way to plan ahead for your retirement and how to incorporate estate planning into the retirement planning scope, consult with a Massachusetts estate planning attorney today.