Helping parents manage money in their retirement
As parents age, it is important that, as their children, you help them organize their money without attacking their independence
It is a matter of time before you may have to add managing your elderly parents’ finances to your list of money responsibilities. Don’t wait for a crisis to happen before you get involved. It is better to initiate the conversation as early as you can. The trick is to be able to do it without making them feel incompetent or treading on toes.
You cannot swoop in one day and take over your parent’s finances. They are likely to see it as an attack on their independence. Approach the issue in stages. The first step is about earning their confidence. And from your point of view, it is about organizing their financial affairs so that it is easier to manage later when you have to take a more active role in it. This step is best taken when the parents are still capable of managing their finances.
Discuss your own money matters with them so that they see you as someone who is familiar with these matters. Retirement offers a good opportunity to get involved. Offer to help them organize their financial affairs as they start on this new phase in life. Most people appreciate help. These include: consolidating bank accounts, listing investments and assets so that they know the accumulated wealth at that point, organizing all the documents related to the investments and assets, bringing together all the insurance policies and eliminating those that are no longer necessary, and putting all the documents related to retirement and retirement benefits together.
Once this is done, it is easy to update it as an annual exercise. It also gives you an opportunity to engage with them on a