Retirement. Do We Really Need to Talk About It?

Apparently, we do. At least you should talk about your parent's retirement with them, according to some new research from TIAA.  The research just released last month indicates that 53% of Gen Xers and 66% of Baby Boomers are concerned about their parents’ financial security in retirement.  The reason why this is a concern is because we get STRESSED OUT about our parents financial situations as they age.  I suppose we didn’t actually need any survey to tell us this.

However, the more worried we get, the more it takes a toll on our own health and financial preparedness.  The research seems to suggest a trickle down effect showing the more we are concerned about our parents, the more likely we are to lack confidence in our own retirement prospects. And I wouldn’t be surprised if this lack of confidence that we develop flows down to the next generation.

Is there any hope to break out of this cycle?  The good news is yes, and it’s not that complicated, but it’s not that easy either.  Evidently, we need to talk about our parents retirement WITH THEM.  Having a discussion, and the sooner the better, allows both the parents and the children to understand the realities of retirement better.  Discussing begets understanding, which begets planning, which, when done well, can alleviate our concerns.  It’s not always a full proof strategy, but it is better than doing nothing and presuming the worse.

Now I said those discussions while simple on paper might be difficult in reality.  How might such a conversation begin?  I would recommend engaging with a good financial planner to who can assist leading a multi-generational discussion at a neutral location.  These types of conversations are never easy, but better to have them with a financial professional than over Thanksgiving Dinner.  Those never work out well.