It’s easy for people to think that they can handle everything that comes their way when they are beginning to retire. There’s a lot that goes in to retiring from figuring out your finances to having more free time. If you’re concerned about your parents and their retirement options and plans, there are some ways that you can help them.
1. Talk to them about finances. Most parents are not very comfortable talking about money or their financial situation with their kids. That can be understandable. Be honest and ask questions to see where their problem areas might be.
2. Assess their spending. Many seniors are already pretty good with money. However, if you know your parents struggled with financial decisions while they were working, think about going to a professional for assistance.
3. Talk about downsizing. Mortgage payments, along with water and utilities are a lot more expensive in a larger home than it would be in a smaller house or an apartment. Size and location are big indicators of how expensive a place is going to be.
4. Make sure they’re still putting money away. As always, it’s important to continue to save money. While they still have a few years, or even months, left of employment, talk to them about saving a little bit more each month leading up to their retirement. Those couple hundred or thousand dollars can mean a lot. If they’re already retired, saving money from their Social Security checks is a good idea as well.