4 Things to Help Your Parents Retire
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According to a study by Northwestern Mutual, about 78% of Americans are not prepared to retire comfortably. The study also suggests that 21% of Americans do not have any retirement savings. If your parents are about to retire, they may be part of the unprepared crowd. Here are a few tips to help them.
1. Update Their Insurance Policies
Insurance may not be the first thing on your mind when you think of your parents’ retirement. However, it can protect them against certain risks. Ensure that all their insurance policies are up to date. Focus on their health, life, automobile, and long-term disability insurance. If you take care of their financial needs, you may want to consider taking a universal or whole life insurance policy for them.
2. Consider Assisted Living
As your parents get older, they could benefit from assisted living. Understand the difference between assisted living and senior apartments and offer the most relevant solution for your parents. Usually, assisted living programs include:
- Three balanced and nutritious meals
- Access to a licensed nurse
- Daily housekeeping
The resident nurse may help with issues like wound care and the administration of insulin to diabetic patients. If your parents live together, medical alert systems may be enough to keep them safe. If they live alone, you should definitely consider assisted living. While the comforts of their home may be undeniable, old age could demand that they make a few sacrifices. The benefits of assisted living include:
- Bathing, grooming, dining, medication, and toileting assistance
- Health monitoring
- Nighttime care
- Consultation with a Registered Dietician
- Incontinence care
- Access to a well-equipped fitness center.
3. Suggest Lifestyle Changes
Ask your parents to consider making certain lifestyle changes, and be sure not to pressure them into anything they might feel uncomfortable with. One of the most significant changes is downsizing their vehicle and home. This could be a fantastic way to save on utilities and maintenance costs. If possible, they should move to an area with a lower cost of living.
4. Brainstorm New Revenue Streams
Your retiring parents need a few streams of income. It reduces their risks in the event that they lose their Social Security funds or pension. In addition, they can use the extra funds to improve their savings or pay off old debt. Here are a few tips for them to earn extra income:
- Selling old or unused clothes, art, and furniture online
- Babysitting or pet sitting
- Turning hobbies into revenue sources
- Renting out their spare rooms
- Purchasing an annuity
- Investing in real estate
With retirement, the earlier you start planning, the better. However, it isn’t always possible. If your parents are retiring soon, you can help them with the above tips. The sooner you start, the better. If you are unsure how to help them, involve them and ask for their opinions throughout the process. If they feel like you are pushing them too hard, they may be unwilling to accept your suggestions.
Asking your parents to improve their lifestyles is a good idea, but avoid pressuring them into anything they might find difficult. Downsizing their home and car is one of the biggest changes. This can be a great method to cut back on utility and maintenance expenses. They ought to relocate if at all possible to a place with lower living expenses.
If at all feasible, they should relocate to an area with reduced housing costs. This is a fantastic way to reduce utility and maintenance costs.