Picture this: You’re a parent, juggling the relentless demands of caring for a disabled child. The financial adviser’s perspective is that causes a pension gap, their solution? Save more in pensions. But is that really the whole story? Let’s dive into a more comprehensive, realistic approach.
The Adviser’s Take: Save, Save, Save
Real-Life Impacts: The Numbers Speak
Research by People’s Partnership shows that parents of disabled children can be nearly £140,000 worse off in retirement. Those returning to part-time work are £89,000 behind, and career breaks can lead to a £55,000 deficit. With 64% of these parents worried about their future finances, it’s clear that traditional pension advice isn’t cutting it.
According to traditional financial advisers, the solution to the pension gap for parents of disabled children is simple: stash more cash into your pension pot. Sounds straightforward, right? But here’s the catch – caring for a disabled child often means reduced working hours or career breaks, leading to a smaller paycheque and higher expenses. Advisers suggest ramping up pension contributions to counter this shortfall. It’s not bad advice, but it’s far from the whole picture.
The Holistic Planner’s Approach: Income and Legacy
Holistic financial planners understand that life isn’t just about saving more. Here’s how they address the unique challenges faced by parents of disabled children:
1. Income Generation Through Care Responsibilities
Instead of solely focusing on pensions, holistic planners explore income-generating activities that align with your caregiving responsibilities. This could mean flexible work-from-home opportunities, freelance gigs, or starting a small business. The goal is to maintain a steady income stream without compromising your ability to care for your child.
2. Adapting Career Paths
Holistic planners help you navigate career changes that accommodate your new reality. This might involve seeking roles with flexible hours, negotiating remote work arrangements, or even pursuing further education to shift into more adaptable professions.
3. Higher Expenditure Consideration
Caring for a disabled child often comes with significant additional costs. Planners help you budget for these expenses and find ways to optimise spending. They look into available government support, charitable grants, and other financial aids to ease the burden.
4. Legacy Planning
For many parents, caregiving is a lifetime commitment. What happens when you’re no longer around? Holistic planners assist in creating comprehensive legacy plans. This includes setting up trusts, ensuring proper guardianship, and making sure your child is financially secure even after you’re gone.
The Need for Better Support Systems
Holistic planners advocate for robust support systems, not just flexible working policies. They push for comprehensive financial planning resources tailored to the unique needs of caregivers. Employers should be held accountable for creating inclusive workplaces that allow parents to balance work and caregiving without sacrificing their financial future.
Conclusion
While saving more in pensions is important, it’s not the silver bullet for parents of disabled children. A holistic approach that includes income generation, career adaptation, higher expenditure management, and legacy planning provides a more realistic and sustainable solution. If you’re navigating these challenges, consider a holistic financial planner who prioritises your long-term well-being and financial security.
Don’t let the traditional narrative box you into a one-size-fits-all solution. Explore a holistic path that truly addresses your unique circumstances and secures a brighter future for both you and your child.
Academy of Life Planning 