Planning For Retirement Alongside Special Needs Care

Warm beach days, playing 18 holes on the golf course, road trips and flights to dream destinations – these are just some of the great things we look forward to when planning for retirement.

Parents of special needs children, however, have a more complicated path when it comes to financial planning and security for retirement, all while considering the outside resources needed for their child when they finally reach retirement.

Ultimately, planning requires more guidance and should be started as soon as possible, and they should utilize professionals like financial planners, tax advisors, and special needs attorneys. 

There is a balance that is made by all parents, regardless of special needs, about how much of their savings are allocated for their children’s lives and how much remains for themselves.

A mutual understanding of what the parents want for their retirement is crucial when keeping their loved child in mind. With this expectation set, there is less time spent trying to find solutions for what they want for themselves and more time allowed for assessing what will be needed for their child alongside their retirement.

If there is a concern about whether they will have enough money, a meeting with a financial advisor could provide certain resources and insurance options to help. 

Make Progress Early

It is beneficial to consider not only financial planning for retirement but also finding the next caretaker or home for their child earlier on, because it establishes a support for their child when the parents are no longer able to.

An example of this could be moving their child to a group home while they are still living making the transition of their child’s advocacy known as by the group home.

If the parents were to suddenly pass without having a plan for their child, the responsibilities of shelter and resources could make others involved confused and worried about their loved one.

Parents can look for federal and state support for special needs children, though state support can be inconsistent, so there may be a need for savings to make up for what the government does not supply. 

A few additional considerations to review during the financial process would be:

• Who is on the title of the account(s)?
• Who are the designated beneficiaries?
• Does the estate plan meet their child's needs and the Agents and Trustees?

Learning from estate planning attorneys and CPA’s about the taxes resulting in these plans will be beneficial for planning retirement as well.

Think About the Future

One last consideration for parents of special needs children is to stay consistent with their estate planning meetings and continue to discuss the long-term possibilities of their financial plans. This does include addressing the possibility of their child outliving them, because it can be unknown how their insurance could change in the event of a death of a parent.

This is why it is so important to consider these options early on in retirement planning to be informed and comfortable with the measures being taken to have a happy retirement and a happy child. 

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