Will your children ruin your pension?

Demographics show that most children finish their university education when their parents are well into their fifties and within sight of the next stop on their financial planning route – retirement. If you thought that education fees were expensive think again. The funds needed to receive a decent income in retirement are equivalent to putting several children through university. Oh wait, you just did that…? You set aside all your spare liquidity for your children’s education and thus had no money left to set aside for yourself? That’s a very typical situation that we see a lot unfortunately. Time is now your biggest enemy and time is one of the few things money cannot buy. You are in serious trouble now.

Practice shows that you have until 55 to make sure your retirement is taken care of. Any extra years you can work should be considered a bonus. Make arrangements now to save up for education fees so that they don’t prevent you from setting aside money for your retirement when you need it most.

For those who ignore the above advice you will lose control over your retirement aspirations and instead will depend on your employer and the government. You will depend on your employer because you need to work all the way up to the pension age to save enough money for your retirement. You will depend on the government because they continuously increase your eligible pension age. You are no longer independent. Look around you at work. How many 60+ year olds do you see at work?

Let’s face it, the current pension system as our parents know it has become too expensive and already is unsustainable. This means you need to make your own arrangements today more than ever before. These arrangements preferably need to be international and portable so that they are beyond the immediate control of national governments and so that you keep your options open.

How? It’s easier than you think as Shoreline has developed a dedicated retirement calculator. We offer three methods of calculation to show the level of savings you need in order to hit your desired retirement income level. Furthermore we go more in-depth on the cause of the current crises and explain the ‘double-trouble’ situation that we all will face once we hit 55+.