Talk it out - that’s the advice coming from Fidelity.
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That’s because an overwhelming number of children and their parents don’t communicate about retirement, according to findings from Fidelity’s latest Family & Finance Study.
The study—which surveyed 1,273 parents and 221 adults on a variety of financial and retirement planning topics—found that nearly four in 10 families disagree on the role of children as parents approach retirement. That may be because 38% of parents and 44% of their children say retirement and related topics have not come up in conversation.
“At some point every family will face issues related to aging,” according to John Sweeney, executive vice president, Retirement and Investing Strategies.
“These discrepancies highlight the fact that many families need to do a better job of being on the same page when it comes to financial planning, as there are real emotional and financial consequences when family conversations don’t happen or lack sufficient depth.”
The good news? The study found that 70% of children were willing to help their parents in retirement, that includes financial support, and that more millennials are taking care of their parents than ever before.
In order to quell the concerns of the 93% of parents who say they wouldn’t feel comfortable depending on their children for financial support, Sweeney emphasizes the importance of creating a dialogue about retirement long before finances and health become problematic.
“Understanding your parents’ goals and expectations—and having an agreed-upon plan, including the role each family member plays—helps ensure more positive financial and emotional outcomes for all.”