Talking to older parents about retirement can be a delicate situation. Parents can have a tough time listening to any advice on money from their children.
Careful retirement planning is necessary for a happy life; Social Security is not enough to support most couples. As children may be required to support their parents financially if they don’t plan properly, it’s up to those children to talk to the parents well in advance of retirement.
Through open, honest discussion, both parents and children can ensure they are on the same page financially when it comes to retirement planning. The sooner discussions begin, the sooner everyone can feel confident they are well-prepared for the future, or correct any problems or issues while there’s still time to do so.
Don’t wait
Begin discussions as early as possible with older parents about their retirement plans and goals. The sooner you address any problems, the more time there is to correct them.
Be honest and open
If you have concerns, let parents know about them and why. Share facts and other information to help guide them to make the right decision.
Lead by example
Be sure your own retirement planning is correct and complete before you discuss theirs. Show them how you have prepared and arranged your own retirement planning to inspire them to change.
Discuss details and options
Arm yourself with knowledge. Present them with options or arrange a meeting with a retirement planning or financial professional you trust and have them deal directly with them.
Know when to intervene
Give parents space but keep an eye out for warning signs. Check for unusual spending patterns or habits. Be aware and make parents aware of retirement scams and rip-offs. Check their credit or show them how to do basic protective measures against retirement and financial fraud. Also be aware of their mental competence and ability to care for themselves, physically and financially.