When you have a child with special needs, you have many financial matters to consider, such as how to include the expenses of supporting your child after you are no longer working.
According to Forbes, it is a mistake for parents only to create a special needs estate plan or a life insurance trust to cover their child’s future expenses, focusing on what their child will need after they are no longer around to provide and care for him or her. You should consider your retirement plan also.
The unique challenge of retiring with a special needs child
Many parents do not financially provide for their children after college. When you have a child with special needs, however, you could still be providing for your child after you retire. This impacts how much income you will need to put back before you can retire.
You may need to provide for your child’s therapy, medicine, hobbies, transportation and more. Your child may choose to live in a private group home and if you agree, you may have to pay a substantial amount of money per month for food and housing.
The retirement plan that includes your child
If your child has a disability that manifested before he or she turned 22, then the child may be eligible for Social Security Disability insurance. He or she could receive half of your Social Security payment in addition to what you already receive. If you were to die before your child, then he or she could have three-fourths of the amount.
By including these figures along with your calculations for your child’s future needs, you may be able to develop a plan for your retirement and beyond.