While retirement is known as a time to enjoy life and relax after years of hard work, parents of children with special needs need to plan ahead to ensure that this transition goes smoothly. Starting this planning early, ensures both your financial future and your child’s long-term care.
Start Early and Plan Ahead
It is crucial to start your retirement planning early. The retirement planning process should be an extension of your existing financial plan. In which, state and federal changes to benefits can be anticipated and your financial strategies can be adjusted accordingly.
Starting early is important, as Medicaid waivers and other support systems are unpredictable. While these benefit systems can help supplement your needs today, they may not in the future. Far-sighted, flexible financial preparation can help absorb changes in benefit programs.
What Conversations are Needed?
Open communication is vital between both parents or guardian(s). It’s common for parents to put their child’s needs over their own retirement savings. A balance, however, is needed. This will be key to ensuring your needs are met. Both parents should be on the same page regarding their child’s future and their retirement goals. A financial planner or a special needs attorney can help align these goals and create a comprehensive plan.
Realistic Planning with Jeff and Emily’s Insights
Professionals, Jeff Yussman and Emily Kile, from Special Needs Alliance, offer some insight on planning for retirement with a special needs child. Yussman emphasizes honest discussions about liabilities, assets, and your desired lifestyle in retirement. Kile, on the other hand, stresses the importance of making housing transitions while the parents are still alive, as this can reduce stress and uncertainty of making such moves after the parents have passed.
Financial Preparation to Retire with a Special Needs Child
First, start by reviewing the titles on your accounts, estate plans, and beneficiary designations. Make sure that your chosen trustees and agents align with the goals for your child. Ensuring this is critical for your child with special needs. Additionally, consider the financial security available through your life insurance policies, such as second-to-die life insurance
How to Arrange Future Care for a Child with Special Needs?
Parents must also plan for the long-term care of their child with special needs. This includes preparing for the potential loss of private health insurance and understanding the longevity of their financial plans. It is important to have regular estate planning meetings that account for these factors.
How Can I Involve Family in Retirement Planning with a Special Needs Child?
While well-intentioned family members might offer to care for your child, their circumstances can change. Marriages, divorces, and other life events can impact their ability to provide consistent care. Plan for these variables to ensure your child’s stability.
Begin Your Retirement Plan Today
Planning for retirement when you have a child with special needs can be challenging. However, you don’t have to do it alone. Our firm focuses on all matters related to estate planning. Reach out today for a consultation. We’ll help you create a comprehensive plan to secure the financial futures of both you and your child with special needs.
Key Takeaways
- Start Early: Begin planning for your retirement and your child’s future as soon as possible to anticipate and adapt to changes in benefits and needs.
- Open Communication: Ensure that both parents are aligned on goals and involve professionals, like financial planners and special needs attorneys.
- Financial Preparation: Review and update account titling and beneficiary designations and consider life insurance policies to secure your child’s future.
- Long-term Care: Plan for your child’s long-term care, including potential loss of private health insurance and regular updates to your estate plan.
- Involve Family Carefully: Consider the potential changes in family members’ circumstances and plan for your child’s stability accordingly.
Reference: Special Needs Alliance (Oct. 7, 2022) "How to plan for retirement when you have a child with special needs”
