Jul 15 2014
When it comes to important but difficult conversations about finances, many families are struggling with the timing, according to Fidelity Investments®’ latest Intra-Family Generational Finance Study. The study showed that almost two-thirds (64 percent) of parents and their adult children1 are at odds as to when detailed conversations on key financial topics, including retirement preparedness, eldercare and estate planning, should take place. While parents would prefer to wait until after retirement, their children want the conversations to take place well before their parents retire or experience health issues.
How wide is the gap? The study, which is unique in that it looks at levels of agreement between parents and their adult children on a range of financial topics, has some interesting findings.
Even if conversations are taking place, how detailed are they?
Despite the confidence expressed by parents about their retirement readiness, research shows that many Americans are underprepared to live comfortably in retirement. Since 93 percent of parents identify “living a comfortable retirement” as the most important motivation to save, discussions with loved ones in advance could serve as a much-needed reality check, or at least a chance to ensure enough money has been set aside and invested to last 20 to 30 years or more in retirement.
Looking for more tools to help with your family finance discussion? Check out MOAA’s Financial Planning Guide! Making smart financial decisions is not always as clear as we would like it to be. Whether you are buying a home, considering investments, starting college planning for your children, or other life decisions, this publication has the answers you need. PREMIUM and LIFE Members can even speak with MOAA financial experts for further assistance.
Image courtesy of Fidelity Investments.