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Helping Parents Plan for Retirement

Posted by: Lisa Nichols | Mar 14,2008

With Baby Boomers planning to retire in record numbers in the next few years, it’s more important than ever for children to help their parents plan for retirement. Talking with parents about a retirement plan should include a frank discussion and hiring a financial advisor and might include some additional planning to help with parents’ expenses.

 

Parents Retirement Plans: Opening up the Discussion

 

Starting an honest and open discussion with parents about their retirement plans is a good first step. Kids should ask their parents about their savings, and how much they have set aside to live on during retirement. Children should also encourage parents to set up a retirement budget. The retirement budget should include average personal, living and medical expenses and expected retirement income by month and by year. A retirement savings calculator can help parents plan and budget for retirement and can also be a great way for kids to get the conversation started.  

 

If Parents Retirement Plan Doesn’t Seem Solid

 

If the discussion unearths disturbing trends, or if kids don’t think their parents will have enough for retirement, a financial planner might be able to help. Financial advisors can help parents with their retirement plans, providing them with ideas for additional investments or savings vehicles. Ideally, parents will get help with planning before they retire, but it’s never too late to get started.

 

When Parents Rely on Children for Retirement Help

 

Children may have to help pay for their parents’ expenses during retirement. If that’s the case, it’s best to know about it as soon as possible. That way, children can begin planning for the extra expenses that they’ll incur while helping to pay for their parents’ retirement. If kids will play a role in funding their parents’ twilight years, it’s critical that they visit a retirement specialist or financial advisor. This will allow them to discuss their additional responsibilities and help plan for the future.

 

Get more information about planning for retirement in the Retirement blog.

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