Baby Boomers need to get their financial house in order

New research by super fund REST has found younger people are concerned about their financial future and worried they will have to support their parents in retirement.

REST surveyed 1000 people between the ages of 18 and 34 – the group known as the ‘Millennials’ – in early 2016 and found 30 per cent said they were concerned they would have to give up work to look after their Baby Boomer parents.

While this finding is troubling, there are plenty of steps Baby Boomers can take to help ensure they can fund their own retirement.

Building a retirement nest egg

Superannuation remains one of the best ways to build retirement savings. If you’re still in work, think about making voluntary contributions to your super fund over and above the super guarantee. Doing this will help to build your nest egg, and at the same time help reduce your taxable income.

Ensure you have the right cover

Another way to help secure your financial future is to put in place insurances so that in the event you do suffer an accident or illness, you can still pay your bills.

There are a range of different types of insurances that can help you to do this. Income protection insurance will pay out if you suffer an accident or illness and cannot work for a period of time. You might also consider taking out trauma or total and permanent disability cover, which will pay out if you suffer a serious illness such as cancer or a heart attack.

If you do have this cover in place, it’s likely you will be able to cover basic expenses while you get back on your feet again.

Finding an aged care solution

All too often, people leave it too late to plan for a time when they are not able to live in their own home anymore. Often, people put this off and when the time comes, it falls to their children to find a solution.

To avoid this, talk to a financial adviser about what your options are, including remaining at home and receiving at-home care, so that when the time comes, you won’t have to rely on your children to make decisions about your aged care accommodation needs.

The earlier you start to focus on building and protecting your wealth, the better your outcomes will be in retirement and the less chance you will be a financial burden on your children.

To find out how we can help you build a stronger financial future for you and your family, contact us today.

The content of this site is dated July 2019 and has been prepared by Merit Wealth Pty Ltd, ABN 89 125 557 002 under Australian Financial Services Licence No. 409361, (“Merit Wealth”).Merit Wealth is wholly owned by Hayes Knight Financial Services Pty Ltd, (HKFS). HKFS is a subsidiary of Easton Distribution Services Pty Ltd (ABN: 67 167 184 072), a wholly owned subsidiary of Easton Investments Limited (ABN: 48 111 695 357), (EAS) an ASX listed company. This information has been given in good faith and has where applicable been derived from sources believed to be accurate at its issue date. However, it should not be considered a comprehensive statement on any matter nor relied upon as such. General Advice WarningMerit Wealth Pty Ltd recommends that you obtain further information and conduct your own due diligence on the services it is offering and obtain your own professional advice on whether they are appropriate for you and your practice. This information has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information consider its appropriateness. © Merit Wealth Pty Ltd. Click here to Download the FSG (part 1). Click here to view our Privacy Policy, Privacy Collection Statement and Complaints Process. Click here to view our Referrer Charter.

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