Retirement challenges

We are constantly being reminded of the need to prepare for retirement and given various tips, however, there are challenges that arise that you only realise once you are retired or approaching retirement. One such challenge, which is also a blessing, is your children.

Some of us have fiercely independent and even wealthy children so they are not a challenge to our retirement savings, but there is a phenomenon called KIPPERS which stands for Kids in Parents’ Pockets Eroding Retirement

Savings. That may sound like a really big mouthful, but I bet you know exactly what that means. Yes, some of our children never leave home.

The studies have shown that a lot of parents really enjoy having their children living at home. The children provide many benefits such as companionship, tech support, chauffeur services, running errands, being on hand if they fall ill to take them to the hospital and help to look after them. With a list like that, you probably figure — who wouldn’t want that? But, unfortunately, as with everything, there are drawbacks.

In extreme cases, having KIPPERS can cause parents to have to delay their retirement indefinitely to accommodate the expenses. Additionally, parents have the struggle of contending with dwindling incomes while simultaneously being unable to lower or even maintain their expenses.

At retirement, some parents choose to downsize their large homes, they want to sell their family home, buy a smaller, more manageab le townhouse or apartment to save on the upkeep on a larger property. However, this is basically impossible to do if you still have children living at home as you have to have space for the KIPPERS. Normally, after downsizing, parents try to invest the surplus funds and live as much as possible on the interest.

As economies around the world struggle to recover from COVID-19, KIPPERS will find it harder and harder to earn enough money to manage