Retirement planning is one of the most important financial decisions people make. Even small changes and adjustments of the contribution amounts or type of retirement investment, can add up to enormous amounts of money upon retirement.
Parents need to educate their adult children in proper retirement planning as soon as possible, so those children will enjoy the maximum returns possible, long after the parents have gone.
It’s never too early to start
Even if your adult children are in their 20’s and just starting out in the working world, learning and implementing proper retirement planning at that young an age can lead to a lifetime of financial success for your children and their own children.
It’s never too late to start
Even if you have older children with 10 or 20 years left until retirement, positive changes made even that late in a career can still have a huge impact.
Be direct
Planning for retirement is one of the most important aspects of financial success. Your children need to understand the importance of retirement planning and how to create a plan and put it into action. They need to understand Social Security will not take care of them and they need a complete plan.
Lead by example
Before talking to adult children about retirement planning, ensure your own personal situation is ideal and reflects the advice you are giving. Reviewing your own retirement plans in detail with your children can also show them the benefits of good planning.
Refer them to your professional
If you have a retirement planning professional you know and trust, set up and meeting and have the children deal directly with the adviser.