My parents-in-law have recently moved into a granny flat on our acreage. We are lucky to have enough space to offer them this opportunity, and from my perspective I’m lucky I get along with them very well.
The driving factor for this move isn’t simply to have our family nearby. It’s one of necessity, to preserve the little amount of superannuation they have to live on for the remainder of their days.
Unfortunately, we can’t always control circumstances that affect our superannuation balances. Parents that raise the children usually end up with less in their super while they’re at home performing all the household duties. Illness or injury can force early retirement. Unemployment impacts contributions to super. There is a lot to consider.
My father-in-law retired early due to illness and my mother-in-law was out of the workforce for many years due to raising the family, and has now also retired early to care for her husband. These factors combined means they only have enough in their superannuation to last them until they are in their late 60’s. And they’re currently renting. Once they run out of their super and savings, they won’t be able to afford to rent. So where does this leave them?
As a family unit, we have decided it is best for them to spend some of their savings to build a small granny flat on our large property. Moving forward then, their living expenses will be a quarter of what they’re currently spending, and their money will last them longer. They’ll also have independence, rather than having to move in with one of their children.
The moral here is it is NEVER too early to start planning for your retirement. The smallest change now might mean a lifetime of difference in retirement.
How much will YOU have to retire on?