Why Parents Should Rethink Education Costs Before It Affects Retirement
Many parents worry: “What if my child can’t go to college?”
But here’s the truth — the bigger financial risk comes when your child is too smart and chooses a path with longer, more expensive education, such as medicine, law, postgraduate studies, or overseas programs.
Every extra year in higher education increases costs, often stretching beyond what parents have prepared for. This can put serious pressure on your retirement plan.
I’m not discouraging you from supporting your children’s dreams. My goal is to help you see the financial picture clearly so you can prepare early, and confidently say yes to your child’s ambitions without compromising your own retirement.
3 Smart Steps You Can Start Today
1️⃣ Review Your Investment Portfolio Returns
Too many parents, even high-net-worth professionals, earn very conservative, poor returns.
Ask yourself:
Am I maximizing my return potential?
Is my portfolio diversified enough?
Do I have a strategy that balances risk and growth?
Even a small increase in annual return, compounded over years, can make a huge difference in funding both education and retirement.
2️⃣ Trim Current Living Expenses
Small changes today can create breathing room tomorrow.
For Example:
Current household spending = RM120,000 per year
Reduce by just RM1,000/month → New annual spending = RM108,000
That is RM12,000 saved each year — money that can be redirected to education or retirement savings.
3️⃣ Reframe Retirement Lifestyle Expectations
Research shows retirees often spend less after retirement.
Ask yourself:
If your current plan for annual retirement spending = RM96,000 per year
Could you still enjoy retirement at RM84,000 per year?
This simple shift reduces retirement pressure while leaving more room to fund your children’s education.
The Bigger Picture: Balance Education & Retirement
Every family is different. The key is to integrate both goals into one plan so your children can pursue their ambitions without putting your retirement at risk.
Next Step for Parents
If you would like to see how this applies to your own situation, I invite you to book a complimentary session.
Together, we will create a personalised holistic financial plan that takes into account:
- Your children’s education costs
- Your retirement lifestyle goals
- Your current investment portfolio returns
This way, you can move forward with clarity and confidence.
