Will you be celebrating with the family this holiday season? For many families, this is one of the few times of the year when everyone can come together. Perhaps you’ll spend time with your children, grandchildren, and your entire extended family.
If you’re approaching retirement, this may be a good time to talk to your grown children about your retirement plans. Retirement is a big change. While the change primarily affects you and your spouse, it could also impact your children and even their children.
By discussing your plans ahead of time, you can set expectations and make sure everyone in the family is on the same page. A discussion about your retirement can even eliminate some questions the family may have. Below are a few points you may want to discuss with your children:
Retirement is supposed to be a joyous and celebratory time. For the most part, it’s a happy occasion. You begin to live life on your time and are able to live on your terms, without the restrictions of a busy career.
However, retirement can also be a difficult transition for many people. You may not know what to do in your free time. You may miss social interaction with your coworkers. You might feel like you lack purpose without a job to attend every day. According to the Journal of Population Ageing, those who are retired are twice as likely to feel symptoms of depression as those who are still working.1
Talk to your children about your plans for retirement. How do you plan to spend your time? What activities would you like to pursue? Do you want to travel or perhaps spend more time with your grandchildren? It’s possible that your kids may want to pursue some of the same interests with you or spend time with you. Their support and encouragement could ease your transition into retirement.
The last few years of your career are your last opportunity to put money away for retirement. Unfortunately, your grown children could limit your ability to save. According to a recent Bankrate survey, more than half of adults say they have reduced their retirement savings because they’re providing financial support to a grown child.2
If you’re providing financial support to a grown child, now may be the time to have the talk about financial independence with them. Talk about how you wish to reduce the financial support and how you can help them transition to an independent lifestyle. If you’re providing substantial support, you may need to gradually reduce it over time rather than cutting them off all at once.
Health Care Wishes
It may not be pleasant to think about future health care issues. However, the reality is that you may face a serious health complication in retirement. In fact, you could face a long-term, chronic condition.
The Department of Health and Human Services estimates that a person turning 65 today has a 70% chance of needing long-term care in the future.3 What kind of care do you want? Do you want to stay in your home or go to a facility? Who should make decisions on your behalf if you’re unable to? How do you plan on paying for health care and long-term care in retirement?
It’s important for your children to understand your wishes because it’s very possible that they may be the ones making decisions on your behalf. If they know what you want, they can make decisions that protect you and your assets and align with your goals.
Ready to plan your retirement? Let’s talk about it. Contact us today at Boston Independence Group. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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Dispatches from basecamp.
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