Everyone benefits from the decision to plan for the future, no matter their age. As people grow older, it becomes especially important to consider when they want to retire and how much it will cost. One of the newer obstacles we are finding federal employees face as they begin planning for retirement is communicating their timelines with family – especially children. Knowing how to talk to children about a retirement plan can help save one a lot of headaches in the process.
Planning for Retirement Should Begin Sooner Than Later
One of the biggest mistakes people make regarding Retirement Planning is waiting too long. Ideally, individuals should begin planning well before they leave the workforce. Those who start planning years before they reach retirement age are much more likely to be prepared.
How to Talk to One’s Children About Retirement
When it comes time to have “the talk”, some individuals feel a little uncomfortable. Because many parents help support their adult children, the talk must be approached as soon as possible so the children have ample notice and can prepare themselves to be more financially responsible. The following are some helpful tips every parent should embrace regarding telling their children about their retirement plans. Check this site for important information: walkercpg.com/retirement-planning.
Give Advanced Notice
Ideally, a parent should approach their child about five years before they plan to retire officially. Because people can be forgetful, parents should remind their children of their approaching retirement every six months until it occurs.
Divulge Financial Information
This is a touchy subject because many people like to keep their financial affairs private. It is important retiring parents are upfront with their children regarding their financial situation. Children need to be aware of the level of financial stability their parents have.
Begin Phasing Out Financial Support
Many parents pay their children’s bills. Once a person retires, they may no longer be financially able to pay their child’s expenses. If a parent knows they cannot provide financial support after retirement, they need to let their child know. The parent should begin phasing out any financial support slowly until they are no longer offering financial help at all.
Get Started Right Away
It is never too soon for a person to begin thinking about retirement. The planning process can begin at any time, allowing individuals years to get their finances in order. In addition to planning, individuals need to be prepared to inform their children of their decisions regarding retirement. The talk may not be easy, but it needs to be done.