Do DINK and SINK families need succession planning?
MUMBAI: Succession planning for DINKs and SINKs—relevant?
The traditional joint family system has been disintegrating into nuclear families. Now, the concept of nuclear family structure is also changing. Being child-free is a conscious choice, and there is an increase in the number of DINKs (double income, no kids) and SINKs (single income, no kids), with variations such as DINKWADs, SINKWADs, DINKWACs, SINKWACs (DINKs/SINKs with a dog/cat), etc. emerging.
The question arises whether succession planning is relevant for DINKs and SINKs. Absolutely, and the planning considerations are unique as their goals are different. Aspects that need to be borne in mind include:
Financial freedom is far more prevalent for child-free individuals as they don’t need to plan for their children’s education and future. With higher disposable income, there is a risk of ‘living in the moment’ and overspending. For example, a child-free couple in their mid-40s with no active employment monetized all rent-yielding ancestral properties without thinking through how such funds would sustain them for the rest of their lives—and the average life expectancy in India is ~71 years.
Financial priorities are very different, and planning for the short, medium, and long term is prudent. It is important to bucket priorities into the present and the future and plan for lifestyle, providing for surviving spouse, healthcare, retirement, disability, and incapacity, particularly for long-term care and assisted living (as they don’t have the support system that traditional and nuclear families may provide).
Careful planning is required for child-free individuals and couples. Otherwise, there is a risk that assets may pass on to unintended beneficiaries. One needs
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