Supporting parents without losing financial future

South Africa faces a significant retirement crisis, with many elderly citizens unable to support themselves financially.

- Hardi Swart

According to the 10X Investments Retirement Reality Report, only 6% of South Africans are on track to retire comfortably. A staggering 90% of retirees cannot maintain their standard of living, and many are forced to rely on their children.

Here's a compassionate and practical guide to helping your parents while protecting your own financial well-being.

Have an open and honest conversationStart by having a frank discussion about your parents' financial situation. Find out what income they have, including pensions and investments, and what their expenses are. This conversation might be uncomfortable, but it's necessary to ensure both parties are realistic about the costs involved.

Evaluate health care and insuranceHealth care is one of the most significant expenses for elderly parents. Ensure that your parents' medical aid plan is adequate and won't lapse, as penalties for late joiners can be substantial. Discuss options for maintaining or upgrading their plan if needed, and factor in long-term care costs.