Are You Ready to Work Longer So Your Kids Don't Have To?

Published by Matthew A | Finance

As parents, we share a universal wish: to give our children the best possible start in life. We pour our hearts, time, and money into their well-being, hoping they'll have a smoother path than we did. But what if this deep desire to provide leads to an unexpected challenge for us?

A recent study by AIA reveals something significant: half of all Singapore residents are planning to keep working even after their "retirement age." For many parents, this isn't just a personal choice; it's a quiet sacrifice, often linked directly to securing their children's future.

You've probably heard friends or family members jokingly say, "I'll never retire!" or "I'll probably have to work until I drop!" Well, this AIA study shows that for a huge number of Singaporeans, that's not a joke – it's a real plan.

Why are so many looking to extend their working years? For parents, the reasons often hit close to home:

• Rising Costs of Living: Singapore is expensive, and it only seems to get more so. From childcare and school fees to daily expenses, raising a family demands significant financial resources.

• Helping with Big Milestones: Many parents dream of helping their kids out with big life events – a university degree without crippling debt, a downpayment for their first home, or even wedding costs. Working longer helps them save up for these crucial contributions.

• The "Sandwich Generation" Squeeze: Some parents find themselves supporting not only their children but also their own aging parents. This dual responsibility can stretch finances thin, pushing back retirement plans.

• A "Just in Case" Strategy: Some might feel safer working longer to build a bigger buffer, fearing unexpected medical costs or future economic uncertainties that could impact their family.

Essentially, for many parents, working past retirement isn't just about personal finances; it's an unspoken promise to their children – a way to ease their burdens and give them a leg up in an increasingly competitive world.

Impact/Potential Challenges for You

While noble, this plan to work longer can create its own set of problems you need to be aware of:

• Tiredness and Health: Constantly working, without a proper break, can really wear you down, both physically and mentally. This could mean less energy for quality time with your family or for personal hobbies you've always dreamed of.

• Missing Out on "You" Time: If you're always working, when do you get to truly relax after decades of hard work? When will you have the freedom to travel, spend more time with grandchildren, or simply pursue passions without the pressure of a job?

• Not Enough for Your Own Retirement: If you're always focused on helping your kids, you might unintentionally put your own retirement savings last. Relying on "just working longer" can be risky if health issues or unexpected job loss crop up.

• Kids Not Learning to Fend for Themselves: While it's great to help, if parents always step in, adult children might not fully learn to be financially independent. This can create a cycle where they continue to rely on you, even when they're grown.

  
  

What You Can Do Right Now:

This isn't about blaming anyone; it's about being prepared. Here’s how you, as a parent, can apply this knowledge immediately and plan smarter:

1. Talk About Money (Openly!): Have honest, age-appropriate conversations with your children about money – how it's earned, saved, and spent. Teach them about budgeting and why it's important to be financially responsible. This is the most crucial step you can take to alleviate future pressure on yourself.

   
   

2. Define Your "Help" Clearly: It's wonderful to want to help your kids, but decide beforehand what you can genuinely afford to help with (e.g., contributing a certain amount to university fees, but not paying for their entire down payment). Communicate these expectations as they grow up.

   
   

3. Prioritise Your Own Retirement Savings: You can't pour from an empty cup. Make sure you are consistently saving for your retirement first. Think of it like putting on your own oxygen mask before helping others. A financially secure parent is a greater long-term asset to their children.

   
   

4. Explore Different "Work" Options for Later Life: If you do plan to work longer, think about how you'd like to work. It doesn't have to be a full-time, stressful job. Could it be part-time, project-based, or even a passion project that earns some income?

   
   

5. Look After Your Health – It's Your Greatest Asset: Working longer requires good health. Make sure you're taking care of yourself now with regular check-ups, exercise, and stress management.

While your love and desire to support your children are boundless, your financial resources and personal energy are not. This study is a gentle reminder to plan wisely for your own future first, and empower your children to build their own strong foundations.

By starting early with good financial habits, setting clear boundaries, and prioritising your own well-being, you can ensure that your later years are spent enjoying the fruits of your labour, rather than feeling obligated to keep working out of necessity.

Give your children the gift of financial literacy and independence – it's often more valuable than any amount of money you can give them. This way, you achieve your dream: providing for your children, while also securing your own well-deserved, comfortable retirement.

Disclaimer: This article is for educational purposes and is not a substitute for any financial advice. All investment decisions should be made in consultation with a qualified financial advisor.