Tips for Helping Your Parents Plan for Retirement

| Sunday, November 6, 2011
By Aikednea Johansen


Are you currently worried with your parents and their foreseeable future? If you're, you need to talk to your parents regarding their retirement plans. Actually, the sooner, the better. Doing so can provide you with, as a loved one, comfort and peace of mind. You need to start discussing retirement with your parents when they reach the age of 50; however, you are able to begin the conversation sooner if you wish.

When talking for your parents about retirement, determine what their retirement wants and needs are. Where do they want to live? What kind of property or establishment do they want to live in? What activities or hobbies would they like to enjoy? It's important to know how your parents want to live in their retirement years, as it'll have an impact on just how much they need to save.

Next, it's important to determine just how much your parents currently have saved for retirement. Is it enough? Do they even know? If you're worried about asking your parents, take the aforementioned approach first. Asking your parents about their retirement objectives can ease you into the conversation concerning costs and savings. Asking your parents outright how much money they've saved for retirement may trigger tensions to ahow up.

When discussing their retirement with your parents, make certain your parents know that they cannot live on just their social security benefits. You may be surprised how many retirees strategy to complete so. Once again, make sure to take a cautious method. You want to lookout for the best interests of your parents, but don't treat them just like a child who knows nothing on the subject. Returning back to social security benefits, tell your parents you read online that most retirees only obtain about 40% of their living costs via social security advantages.

In line with social security benefits, you should inspire your parents to request a statement of their advantages. This really is easy to do on-line or over-the-phone. This statement can provide them an estimate of how much they'll receive in social security advantages. This is a good wakeup call for those who think social security will cover their retirement expenses. Make sure to remind your parents that their statement is just an estimated total.

You will also want to look at your parent's profession. This is important, as the economy is having a negative impact on numerous businesses. Some older workers are discovering themselves forced into early retirement. Is your father or mother in the car business or an additional business that's taking a hit? If so, there's a chance they could be made to retire early, if it hasn't already occurred. In the event of forced, early retirement, do your parents have a plan?

Also, discuss healthcare with your family. If your parents were to move into a retirement community examine the costs. Then, examine the costs of long-term care. When your parents live together, they are able to save money, but what happens when one gets sick? Can your parents afford two separate living arrangements? Make certain the cost of long-term care is realistically entered into their retirement plan.

Speaking to your parents about retirement is a step in the right direction, but they can nonetheless take advantage of expert help. In the event you feel that your parents are unprepared for retirement, offer to schedule and pay for a meeting with a financial advisor.




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