I love reading the news. As I get older, I’m coming to appreciate well curated sources for news. One of them is Morning Brew. It’s a FREE daily news recap written in a very casual conversational tone.
Well, the Morning Brew team have launched a twice-weekly newsletter focused on money matters called “Money Scoop”. It’s a nice blend of proven money strategies and new money trends (like cryptocurrency). One of their recent articles caught my eye, “3 Questions to Ask Your Parents Before Retirement”. The article was focused on the conversation that younger people should have with their parents to make sure their parents are prepared for retirement.
As I was reading the article, I was reminded that conversations go both ways. So yes, if you’re a younger person worried about how your parents are preparing for retirement, then by all means – ask them. But if you’re an older person preparing for retirement, have you started sharing information with your loved ones?
We’ve talked before about estate planning and making sure that loved ones know your final wishes, but I think this is something different. Do you have enough money to sustain your retirement?
If the answer is YES, then great! That’s quite the achievement. Saving for retirement isn’t easy.
It does raise the question about how much you expect to pass on in terms of inheritance. And do your loved ones know? I mean, are they expecting an inheritance? I know individuals who will need an inheritance to buy their own home. If they don’t get it…well, they will be surprised. And possibly upset. Does it make some sense to have conversations about what you expect to pass on to heirs?
If the answer to the “have enough money” question is NO, well…then do you need to talk with loved ones about how you’re going to manage?
This is nothing to be ashamed of – not having enough money to retire. According to Synchrony Bank, the average American in their 60s should have 8-10 times their annual salary in retirement savings. That’s a lot! There are many reasons that individuals do not reach that goal including housing expenses, health care expenses, and education expenses. But it doesn’t change the fact that a person might need help. Waiting until the last minute to ask for money or resources isn’t helpful to anyone. Start thinking about how you’re going to approach that conversation.
Regardless of the answer to the retirement planning question, I realize this is a difficult conversation. It’s possible we don’t have all the answers. On some level, retirement is an unknown for many of us. We might not have the answers for a long time.
But talking with loved ones about our plans could help to put our minds at ease. The people around us know we’re okay. They know we’re thinking about our plans and taking all the right steps. And if we need help or guidance, that we’re comfortable asking for it. Better to start those conversations now.