How do I manage my children loans without tapping into my annuity?
The answer depends on whether you are trying to help your children pay off student loans that they took out in their own name or whether you are trying to pay off loans that you took for your children in your own name.
If the situation is the former, that the loans are in your children’s names, the answer is a tough love one. While it’s so very natural to want to help and protect your children, using your retirement benefit to do so actually puts them at risk of having to take care of you in your golden years which will likely correspond to the years in which they are most burdened with saving for their own retirement and raising their own families. So as painful as it is, the best course of action is to help your children sit down and take a good, hard look at their budget to see where they can find the additional funds to be paying off that debt.
If these loans were ones that you took out in your own name, that is a different situation as you are solely responsible. Here the question becomes whether the loans are private or government - as the former will affect your ability to potentially renegotiate terms to monthly payments you can afford right now. So if the loans are in your name, and especially if private, talk to the lender to see what terms you can come up with that allow for a monthly payment that you can meet without tapping your annuity. The thing you want to avoid — and kudos to you for recognizing this — is tapping your annuity to pay off these loans.
Retrieving data ...