Welcome, readers! I’m Shayla Love, a science journalist and a longtime admirer of Your Mileage May Vary. I’m thrilled to be filling in for Sigal Samuel while she’s on parental leave. Today, we’re exploring a question that resonates with many: how to balance personal enjoyment and family support during retirement.
As a mother of three and grandmother of four, I’ve heard the concerns about my generation, the boomers, hoarding wealth and not passing it down. It’s a topic close to my heart, and I’m eager to explore it through various lenses—philosophical, psychological, and economic.
The Paradox of Thrift: A Keynesian Perspective
Many of us face a dilemma: should we splurge on a comfortable retirement or save for our children and grandchildren? It’s a question that weighs heavily on the minds of many in the middle class. But is it really an either-or situation?
Economist John Maynard Keynes offers a surprising perspective. He argued that when times are tough, people tend to save more, leading to what he called the paradox of thrift. If everyone saves, no one spends, and the economy stagnates. This principle can be applied to our family dynamics as well.
Traditionally, inheritance involves setting aside large sums for future generations. But with people living a decade or more longer than in the mid-20th century, this approach presents new challenges. Retirees today often find themselves in a unique position: they have decades of good life ahead, while their adult children are facing significant financial stress.
Investing in Family: A Win-Win Approach
Keynes wasn’t against savings; he believed in spending money wisely to stimulate the economy. This philosophy can be applied to our family dynamics. Instead of hoarding wealth, consider investing in experiences and assets that benefit both you and your family.
For example, you could invest in a lakeside property that appreciates over time and can be enjoyed by future generations. Alternatively, you might assist your children in buying a home with a comfortable guest suite. Another option is investing in a family business, fostering growth and creating more wealth over time.
These approaches not only provide a fun way to spend your hard-earned money now but also create more abundance for your family’s future. Moreover, they involve spending more time together, strengthening those precious family bonds.
The Moral Component: A Confucian Perspective
Beyond the economic aspects, there’s a moral component to consider. Do we owe it to our family to set them up for a comfortable financial future, even at the expense of personal indulgences? This question delves into our obligations to one another.
Confucius the fifth-century Chinese philosopher, believed that our roles within the family are crucial to understanding ourselves. He emphasized the importance of filial piety—respecting, honoring, and caring for our parents and elders. However, the concept of reciprocal filial piety has emerged, where children feel a genuine sense of gratitude and want to care for their parents in return.
In Western family life, the discussion often revolves around what parents owe their children, rather than the other way around. It’s worth engaging in conversations about what we all appreciate about each other and how our family is stronger because of the ways we look after one another.
As we navigate the complexities of retirement spending, let’s remember that it’s not just about the money. It’s about creating meaningful experiences, strengthening family bonds, and finding a harmonious balance between personal enjoyment and family support.
