Parents work their whole lives to provide their kids with the best amenities. The high tuition fees, living costs, and daily expenses make it difficult to plan for the future, especially in states like Calgary. Therefore, as kids, it becomes our responsibility to help our parents plan their retirement well. It includes the discussion about where they will be living, how they will manage their finances, and what will be the major source of income to keep up with their expenses. This article cites some tips to help you plan your parent’s retirement.
Talk things out
To begin with, you should sit and talk to your parents about the importance of making a retirement plan. According to studies, 21% of parents in Canada do not have any savings for the future. So, it is important to sit with them and discuss the plan. You can start by taking details about their financial status and their savings. It should also include whether they are planning to live in a retirement home or have their own home. You can find a List of Retirement homes in Calgary on the internet and start researching their services and membership prices. Simply put, the process of planning a good retirement begins when the parties at both ends are ready to open up about their wants, needs, and expectations from one another.
Address their unnecessary expenses
When you talk to your parents about their finances, you also get a fair idea of the unnecessary expenses they may have. The main objective of talking is to refrain them from spending on unwanted things. Instead, they should invest somewhere to get good returns during retirement.
Additionally, if you find them buried under debt, you can take over the control and suggest methods to help them quickly get out of the debt. One of the most common methods is the snowball method and settlement programs.
Expose them to various revenue streams
Understanding that everyone should have various income methods to reduce the risk of losing a job or social security funds is vital. In addition, when you have different sources of income, you can use the extra money to pay off your debts or increase your savings. For instance, earning 100$ extra a month can add up to 1200$ a year. Whether you have to pay off the debt or add it to your savings account is a good amount. You can begin by making them understand the value of generating income from different sources. In addition, ensure that it does not burden them; instead, find easy peasy methods such as:
- Sell unused items online.
- Turn hobbies (baking, painting, handicraft, etc. ) into a side business.
- Invest in real estate and more.
Check their eligibility for government benefits.
The Canadian government offers various benefits such as taxes, medicare, housing, and others to older citizens. They have put the details on the official website, so you can check the eligibility criterion and apply it to your parents.
When you plan to help your parents, it is important to understand that they may have some idea about their retirement. So, before you jump in to conclude the plan for them, you should first listen to them and their thoughts on the same. Look through their insurances, debts, income, expenses, and living patterns and suggest the changes accordingly. You may also connect them with a legal advisor to help them understand the plan and policies.
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