Preparing for the Financial Future of Individuals with Special Needs

 October 6, 2016
Posted by M&LAdmin4

Thursday, October 6, 2016

As a business that focuses on helping individuals with disabilities build successful, independent, inclusive futures, M&L Special Needs Planning is in the unique position of employing financial planning experts that are on both sides of the special needs journey. We are parents, friends, and advocates of individuals with disabilities, but we are also professionals and planners in the special needs community.

Speaking from this unique perspective, if we were to take one piece of advice and give it to new parents of children with special needs, it would be this: it is never, ever too early to start financially planning for the future of your child with a disability. The earlier you begin to plan, the more likely you are to achieve your goals and secure a stable and financially secure future for your family.

In a recent article, planadvisor.com examined results from a recent survey assessing the future financial outlook of families with special needs and the steps that they are taking to become financially prepared for their future. The results of this survey are concerning, if not surprising, with one statistic in particular really standing out: Out of the 1,015 Americans interviewed it was discovered that 30% of respondents were concerned about their financial future, but were not yet planning or saving for their own retirement.

Please join us as we take a quick look at the data contained in this article and discuss the importance of financial planning.

Survey Results and Statistics

The above statistic is only one of a number of concerning stats revealing the level of financial unpreparedness amongst families with special needs; as the article reveals, most caregivers of individuals with disabilities (63%) don’t seek professional help in planning for their financial future, although they recognize the value of having a plan in place. In addition, the article also reveals that families with special needs haven’t taken the steps to ensure the protection of their family members with special needs in the event of a caregiver’s death:

“The survey also found that 9 in 10 caregivers (87%) are concerned about what will happen to their special needs relative when they are no longer living. Fifty-nine percent have not even taken the basic step of preparing a will, and 60% of caregivers with life insurance have less than $300,000 of coverage…only 23% of caregivers have a formal financial plan for their dependent.”

In addition, the article also published the following concerning statistics:

  • Only 16 % of caregivers feel they are financially secure
  • 70% believe that they will have to compromise their own retirement plans to finance the needs of their dependents with special needs
  • 77% believe they won’t be able to retire when they want to
  • 80% are concerned they won’t be able to afford a comfortable lifestyle when they do retire

These somewhat scary statistics and figures (especially as the survey states that the “average cost of caring for a dependent with autism is estimated to be between 1.4 and 2.4 million”) reveal the importance of educating the special needs community on their options in regards to long term financial and life planning for their family members with disabilities (and the whole family in general).

For more information on the different methods of saving for your family with special needs, we encourage you to read this post, published by our sister site www.specialneedsplanning.net: Simplifying and Securing Your Future: M&L Special Needs Planning, LLC.

Would you Like More Information?

Thank you for taking the time to visit our blog today! We hope that this post has inspired you to take a close look at that financial plan you have in place for your family with special needs. If you don’t yet have a financial plan, we hope that we have inspired you to begin one.

If you would like more information on special needs financial planning, please take a moment to browse around our website; all of the services offered at M&L are designed with according to our vision of helping families with disabilities build independent, inclusive, successful futures. We are dedicated to providing financial and life planning services to families with disabilities, and educating these families in an empathetic, methodical, non-threatening way.

If you would like more information on this article in general or would like to learn hot to begin planning for the future of your family with special needs, please contact us. We look forward to hearing from you!

Thanks again – until next week!

 

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