How To Talk To Your Parents About Retirement

My mom turned 65 this past June, which means it’s time to start having conversations about retirement. Specifically, when should mom retire? Does she have enough retirement savings to carry her through the next few decades? Thinking about mom’s retirement made me feel overwhelmed and unsure of what came next. I realized my family should get the ball rolling on retirement planning before crises occur. So here is what I’ve learned about the topic so far.

Don’t Wait To Talk About Retirement

As I’ve been researching how to talk to your parents about retirement, one thing keeps coming up: start early. Don’t put the conversation on hold just because it’s intimidating. When discussing finances, be gentle and avoid sounding condescending. Here are some questions to ask your parents or loved ones about the future:

1. Do they want to stay in their home, live in a retirement community, or stay with relatives?
2. What kind of retirement savings do they have? How much do they have in their retirement account, and how long will that last?
3. When can they collect Social Security benefits (SSA)?

Ask About Their Finances

Money is a complicated topic, and for some families, it’s one they would sooner avoid than discuss. But it’s crucial to find out if your parents have hidden debt or other financial problems before it’s too late.

• Find out where they bank, and keep account numbers, passwords and other details in a safe, accessible place.
• Do they need help managing their finances? If the need arises, figure out who is the best person to be their money manager.
• Do they have a trusted financial advisor? If so, get their contact information and keep it safe with their other account information and passwords.

What About Social Security?

How much can mom draw from SSA, and will that be enough to cover living expenses? First, determine when your parent will be eligible for their full benefits. This is called full retirement age (FRA), which depends on when your parent was born. My mom was born in 1959, which means her FRA will be 66 and 10 months. If she retires before this date, she won’t be able to collect 100% of her benefits. However, her benefits will continue to accrue between her FRA and age 70.

Mom is healthy right now, so it might be worth delaying retirement until she turns 70. She can work and draw benefits, but the earnings limit is $22,320. You lose $1 in benefits for every $2 earned over the cap. Since my mom is self-employed, SSA only counts her net income after taxes. It’s worth checking www.ssa.gov for more information about drawing benefits.

What’s Next?

After learning more about retirement, I decided that my three siblings and I should plan for a family meeting to discuss our mom’s future. To spread out the responsibilities, each person could research a different aspect of retirement. My brother, Andrew, has access to our mom’s bank accounts. He would be in charge of sharing information about her retirement savings and finances. My sister will gather and make copies of mom's will and other documents. I will research SSA and other benefits. My brother, Daniel, will start looking into housing options when mom needs more support with daily tasks.

Other Essential Resources For Families:

• Social Security Calculator (www.ssa.gov)
• Retirement Age Calculator (www.ssa.gov/benefits/retirement/planner/ageincrease.html)
• Learn more about Medicare (www.aarp.org/health/medicare-insurance)
• AARP Family Caregiver Resource Line: 1-877-333-5885
• Check out the Maryland Department of Aging for local resources (www.aging.maryland.gov)

As our parents age, we should have a plan for the next leg of their journey. If you need assistance caring for your parents or older loved ones, Lean on Dee Senior Home Care is here to help. Contact 410-449-4538 or visit www.leanondee.com.