How to Help Your Parents Before Their Retirement

December 2, 2024 | Posted by: Sherry Corbitt

While there is a tremendous amount of focus on ourselves when preparing for our retirement, you should also keep your parents in mind. Although finances are a personal aspect of everyone’s life, it is vital to keep them in mind. Many parents, especially those transitioning from working to retirement, can feel overwhelmed. However, there are various ways that you can lend your parents a helping hand in their retirement.

Have Open Communication With Them

During this stage, it may be difficult for your parents. Understandably, this is a new period in their life, which they may not be ready for. Although they may be defensive, you must take the time to sit down with them to discuss their plans. This may be a touchy subject for them, and they may feel like you are being too pushy. Remember that they may not want you to see their finances, which should be respected. Ensure that you proceed with attentiveness and keep their interests in mind. Try to find ways to make it easier for them to work with you, such as inviting another sibling or third party into the conversation.

Understand Their Finances

If they are willing to speak with you about their finances, you should analyze a few aspects. This should include their income, their spending, debts, and of course, savings. Knowing these vital financial areas will give you a better idea of what your parents need to work on before retirement. It also establishes an accurate amount that they have prepared savings-wise. With this newly founded information, you can split each section up separately and focus on each one at a time.

Discuss Major Unpaid Expenses

After looking at what your parents’ finances look like, you may know of some significant unpaid debts and expenses. These should be taken care of immediately and not left until they are retired. If these debts have been outstanding for an extended period, they will have high interest. Paying this off during retirement is unwise since it will eat away at savings. Suggest some ways that they can start paying off each expense at a time. If they feel uneasy about handling such debts at this time, it may be wise to bring in a third party. This could include their bank representative, who may offer practical advice on such expenses. They may feel more willing to listen to someone with more experience handling debts.

Suggest Lifestyle Adjustments

Once you have looked at some of their bank statements, you may notice that your parents are paying an excessive amount on subscriptions or memberships. This can include various cable channels, home phone plans, or delivery packages. Take the time to examine what they regularly use and what is simply just using their money. When you can go through each cost and break it down, you could help your parents cut down their monthly fees by a large degree. This extra money can go towards their unpaid expenses, as previously discussed.

Ensure They Are Still Covered

Insurance coverage is vital at any point in your life, especially when you are retired. An unexpected occurrence can happen anytime, and you want to ensure that your insurance will cover such instances. Take the time to sit down with your parents and review their insurance coverage. You may discover that some of their insurance has expired and that they are not even currently covered for what they thought they were. If this is the case, then it is vital that you immediately take care of this. You should start by ensuring their insurance company is aware of the situation and get them reapplied right away. The sooner they are covered, the less anxiety you all will feel.

Always remember that although your parents are getting older, they still have control over their finances. They may not need assistance with all areas of their retirement preping, so carefully establish what they do need help with and assist respectfully. I am your Mortgage Broker for life – so reach out and let’s discuss. My advice is always free, and I’d love to hear from you.