While some adults find retirement planning comes naturally, others struggle. Some seniors find themselves entering their retirement years unprepared. They are unsure of their finances and wonder if retiring is even a possibility.
If you have a parent, or another older adult you love, who is nervous about their financial future, help them get on track. Financial worries can be a huge source of anxiety and stress. Kendall Van Blarcom is a senior helping seniors, he is available to talk through issues with you and your parents.
Get Honest and Assess the Numbers
Is it common for adult children to be uncomfortable talking about finances with their parents. Some feel it is a role reversal, that the child is encroaching on the duties of their parent to provide for them.
The truth is, you need to speak openly and honestly about finances so that you can pave the right path for your parents years as an older adult. In order for this conversation to be as productive as possible, you’ll need to know if they are receiving funds from Social Security, an employee pension, or other retirement investment accounts.
Retirement Planning without Debt
Even after determining income, you can’t establish spending priorities until you are aware of any debts. The proportion of older people with debt has been rising over the past decade or so, and while you might assume this is due to mortgages, that is not always the case. There are also senior citizens and older adults using credit cards to make ends meet.
If you discover your parents are carrying debt, aggressive action might be needed. Carrying debt into retirement is not optimal. In order for your loved one to retire, you may need to seek help. Options include talking to a debt counseling service or negotiating more favorable terms with creditors, for example.
Changing Spending Priorities
Once you have your older adult’s income and expenses determined, and the debt managed or eliminated, it’s time to look at spending. In order for an individual to retire, they have to recognize their spending habits will change. Healthcare expenses might increase and a larger nest egg will be needed for unexpected expenses.
Part of this discussion could involve changing living arrangements. Older adults often want to stay in their own homes, and doing this might be a possibility for your family. But if expenses require adjustments to living arrangements, it might be time to talk about moving to a smaller residence or moving in with a family member.
Life transitions are frequently difficult. If you are helping your parents with retirement planning, this could be the ideal time to reach out to a personal counselor. You can work together to solve your problems and achieve results favorable for you and the older adult you love.
Kendall Van Blarcom is a senior helping seniors. Contact Van Blarcom Consulting today for help with your personal problems. Or, reach out to provide support for an older adult in your life.