Wednesday, February 11, 2009

Nontraditional Families Face a Greater Struggle


By: Steven Muller
Planning for retirement is not an easy task. There is a lot of anxiety that occurs because of the fear of not having enough money to live off of after working. A married couple has to carefully evaluate what can of lifestyle they want to live presently and in the future. Calculating the bills they will incur in the future is also an important step in deciding how much of a retirement fund to create. This worries are typical for the “traditional” family, but has a MetLife study has shown nontraditional families are much worse off.

These types of families include a single parent with kids or blended families where the parents have children from a previous relationship. According to the study nontraditional families are less likely to have a distinct retirement plan. This is the hardship that comes from only having one income to live off of and having a family dynamic that the focus is on blending the family together rather than their own financial stability. A lot of these families wish there were retirement tools that were specifically designed for their needs. There are currently few options that are out there.

Some tips to deal with these situations include communicating with your children about who will pay for college and other major expenses. The most important part of the retirement planning process is communicating with all the parties involve so there is a clear understanding of everyone’s goals. Knowing the about of risk that a nontraditional family, especially single parents, is incredibly important. One doesn’t want to put themselves in a situation where they can’t provide for there family in the present because of risk that was taken for retirement. Dealing with these hardships is a necessary evil that nontraditional families have to go through. However, with the right planning they can achieve their goal of retiring comfortably.
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