One of the benefits of a struggling economy is the increased attention to retirement planning. Granted, some people will have a retirement plan in place early in life, but the average American isn't fully prepared to retire into a life of comfort. As the child of an aging parent, it would be wise for you to sit down with your parents and discuss the specifics of their retirement plan. Here are a few questions to ask to help them as they plan for retirement.
Start Early. The sooner your start planning for retirement, the better. Even more so for your older parents, the time to talk to them about retirement planning is immediately. By age 50, you should have talked to them about their retirement plans, even if just in an informative manner. Even if your parents are retired, it's not too late to have this conversation.
Know their Goals. Where do your parents want to live when they retire? Do they wish to travel often? Do they plan to move? Do they wish to begin any new hobbies or activities? Get an idea of where they envision themselves once retired so you can help determine their financial needs during retirement.
Determine Finances. You may not feel comfortable asking about your parents financial situation, but finances are important in determining how to plan for retirement. You need to know if they've saved enough to sustain their lifestyle during retirement. Remind them that they cannot survive solely on Social Security benefits alone (according to studies these only cover roughly 40% of retirement costs). They need more planning.
Check into Social Security. Although your parents can't survive on Social Security benefits alone, knowing how much they will receive in benefits will factor into their financial retirement planning.
Early Retirement? Let your parents know that early retirement may be a possibility, especially if the industry in which they work is being hit hard by the economy. They may be able to avoid lay-offs or cut-backs by retiring early if their affairs are in order.
Discuss Health Care. One of the biggest expenses during retirement will be health care. Consider the medical history of your family, any diseases or disabilities your parents have, and factor in costs of doctors' visits and existing medication. Also discuss their desires regarding health care facilities and assisted living homes.
Antelope Valley estate planning law firm Thompson Von Tungeln (TVT) offers sophisticated estate planning and administration for the affluent, discriminating client. As Board Certified Specialists in Estate Planning, Trusts and Probate as certified by the State Bar of California Board of Legal Specialization, partners Mark E. Thompson and Kevin L. Von Tungeln are expertly equipped to serve these clients with the creative, effective and custom solutions they demand. For more information, contact TVT at (661) 426-2499 or visit their websites at www.EstatePlanningSpecialists.com and www.Medi-CalHelp.com.