Your adult children might be costing you at the moment, but in the future, you might end up costing them.

We all know that the number of adult children who are well into their 30s and still living at home is growing. Home is where the food is, as well as a comfy room, a washing machine, and a relaxed family way of life.

There might be a nominal rent given the benefits involved, but hey, who cares given what it would cost to set up on your own outside the family home.

Your adult children might be costing you quite a bit of money as parents, but have you ever stopped to think that one day you might end up costing them just as much? Or even more?

The financial (and emotional) costs of having to support parents through the retirement years where the costs are huge and the funds are few, cannot be underestimated. Statistics show that over 90 per cent of all Australians will retire into circumstances that are far less favourable than they ever thought possible. This means that there is a very good chance that you will have to support your parents, and your children in turn support you, unless you do something about it.

Respected demographer Bernard Salt predicts that the peak of the “Age Tsunami” will hit in 2020. At this point the age care system is expected to be in crisis. The number of people aged 70 or over is steadily increasing. In fact, in the next 10 years the number will double! The question is, do you want to be part of this crisis where you have to rely on your children or the government to look after you, or would you like to be in a position where you are financially independent and ‘above’ this unfolding social crisis?

There is a huge financial wrench that hits families who are trying to plan for their own financial future only to find out that they have to support their parents’ as well. The medical costs alone will be enormous, not to mention changes to the home to accommodate elderly and infirm relatives.

The good news is that there is an answer, and there are steps you can take to ensure you don’t end up in such an impossible situation. Investments in property made well before the funds are needed is a proven solution to the challenge that most of us will face. The key is not only to act, but to act early, so there is enough time for the miracle of compounding growth to do its work.

So the next time you are left wondering how many more years your adult children will be still living with you, do something concrete to ensure that one day you won’t have to fall back on them. Buy investment property. One day both you and your kids will be grateful that you did.

If you would like to learn more and discuss how McCarthy Group can assist you, click here.