The United Nations predicts that by 2050, life expectancy will increase on average by 22 years in developed countries like New Zealand.
Living longer is good news, however as a result, children and grandchildren may need to help out with the cost of looking after ageing parents and other relatives.
The International Monetary Fund says longevity could pose something of a financial risk to individuals, who could possibly find themselves a little short on retirement resources.
“If individuals live three years longer than expected – in line with underestimations in the past – the already large costs of ageing could increase by another 50%, representing an additional cost of 50% of 2010 GDP in advanced economies…” says an IMF report titled ‘The Financial Impact of Longevity Risk’.
As a caring child you may need to factor in looking after your parents, it’s important to take action now, here’s how:
- Consult an expert on what eventualities your planning may need to anticipate
- Cultivate savings over spending
- Take advice on the best investments needed to help you achieve your long-term goals, according to your risk profile
- Insure yourself against risks that could potentially set you back in your financial progress
Plan for the future you want! Contact our team today on 0800 438 238 or click here to send an email.
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