How to Talk to Your Parents About Their Retirement Plans

Our parents are aging and transitioning into new phases of their lives. Although it can be difficult to talk about, it’s advisable to discuss with your parents what those plans are.

While it’s not the easiest conversation to start, it will be vital to bring up the subject so that you and your parents know they are prepared.

There is a way to bring up this topic with your parents. All it takes is some preparation. Not only can this save you all a lot of worry, but it can get the practical ‘red tape’ out of the way so that your parents can focus on living their lives to the fullest, and you’ll have everything you need to provide ‘backup’ in case they need you.

What kind of safety net have you established for your healthcare needs?

It’s best to approach this question with compassion. Start with, “I worry about you, but it would help me quite a bit if we could go over your healthcare safety plans so that I know you’ll be prepared if you get sick or injured.” Then, once a dialogue is open, you’ll want to ask questions like these:

• What kind of health issues are you experiencing now? Of course, any health conditions need to be taken into account. This allows you to do research so that you’ll know a little more about related possibilities so that you can plan for them
• Is Medicare going to be enough to cover your needs? Some retirees are only using Medicare, and if this is the case with your parents, you may want to investigate strategies to create a financial emergency buffer plan
• Do you have additional long-term insurance in place? Policies should be noted so that you can take action if needed and ensure that health providers are aware of these insurance protections
• Are these expenses covered if one or both of you need additional care? For example, if in-home care is required or even a caregiver living arrangement is needed, you’ll need to know what is in place to help make that happen
• Have you designated a family member to help you if medical assistance is needed and you can’t make arrangements? It’s good to have one or more family members on call just in case your parents need a ride to the doctor and medical personnel needs to decide when your parents may not be able to do it for themselves

Do you have a plan for your financial security?

Asking about finances can be tricky. After all, they’re your parents, so they may resist this or not want to worry you.

But unfortunately, it’s something that you’ll need to press because without work revenue coming in anymore, it’s imperative to know that they’re secure.

The best way to word it will probably be, “What are your plans to stay financially flush while you’re enjoying your retirement?” Once you’ve got the subject broached, you’ll want to discuss several questions, so here are a few important ones to get you started:

• What are your current, reliable income sources? You’re looking to create a ‘financial profile’ based on reliable monthly or yearly income, such as Social Security, pensions, rental property revenue, etc
• How much have you put away in savings? This should include standard savings and 401(k), either static or dispersed in lump sums. This will be a safety net for emergencies, among other things, so it’s important to note this to create a complete profile
• Have you explored all the financial assistance options in case they are needed? Again, you can look into this even if your parents have a flush nest egg and recurring income. It never hurts to have a backup plan, after all, and this can make the difference between a smooth, sweet retirement and a sudden disruption in quality of life should pitfalls arise.
• Do you have any current active investments, and if so, which accounts are they tied to? Some retirees are still active investors, and if this is tied to a specific account, then that’s all well and good. But you’ll want to count this income and make sure that investments aren’t tied with the duplicate accounts as savings in case those investments take a dive and your parents find themselves in financial trouble
• Have you prepared a will? This is important, and you should remind your parents that their will is their business; you just want to know that this has been taken care of. Without it, there’s always a possibility of the government taking the fruits of their life’s labor, so don’t forget this critical step

https://www.agingcare.com/articles/talking-to-aging-parents-about-money-150098.htm

Do you have caregiver plans or preferences?

Caregiving is a sensitive subject. No one wants to live in a retirement home, so this deserves a section of its own.

But first, you’ll need to ask your parents what kind of caregiving options they prefer so that you’ll be able to help make this happen if it is needed.

For instance, there are ‘retirement condos’ that include in-house nursing staff, but these are costly, so if this sort of scenario is preferred, you’ll need to look into what hiring a full-time nurse will cost. It would be best if you priced it on a year-by-year projection so that you could realistically gauge the costs.

If a retirement home is required, you should choose one well in advance so that you know that if the time comes, your parents will be going to a place they have chosen and feel comfortable in for the foreseeable future.

Typically, this would be a comfortable location close enough for friends and family to visit. Still, ultimately, this is something that your parents will need to decide—they might already have a nice location in mind.

It might also be a good idea to look into the cost of accessibility upgrades for their current home. For instance, a sit-down shower conversion is suitable for bathing safety.

If there are stairs, a stair lift might be perfect if your parents have mobility issues. While these upgrades can be expensive, you need to look at the big picture compared to a caregiving home.

Home upgrades can give them more freedom and privacy to live their lives as they are used to, and it saves you a lot of money in the process, although a caregiver or at least some sort of emergency response solution will be vital.

You’re retired: what are your plans to enjoy all this free time?

Finally, entertainment will keep your parents happy, sharp of mind, and fully able to take advantage of the years ahead. Keeping occupied is one of the most critical aspects of retirement, so you should ask questions along these lines:

• Do you plan to volunteer somewhere to pass the time? Many workaholic retirees quickly get bored of all of that free time. This can lead to depression, and volunteer work is a great way to keep this at bay. As it’s voluntary, there is no pressure, and workaholics can still do what makes them happy
• Are you planning to do a little traveling? Many retirees like to travel, which you can help with, digging up brochures and finding deals now and again in your free time to help them realize this dream
• Do you have some hobbies that we should build a workshop for? Retirement is a fantastic time for hobbies, and it’s worth considering pricing what is needed to build a ‘dream workshop.’ You’ll be surprised how cheap it can be done, and this will give hobbyist parents something to do that they always had to MAKE time for before retiring

Some final words on retirement planning

While it’s a lot to digest and definitely a conversation that everyone dreads, asking these questions now is your best bet for protecting your parent’s future and preparing for the inevitability of every life.

Approach it positively. You and your parents will be more comfortable putting a positive spin on things.

Both you and your parents know that it needs to be done, so getting the hard questions answered now means that everyone can look ahead and hope for the richest, fullest retirement possible.