Yahoo Finance 5 Ways To Support Your Gen X Parents in Retirement When You Can’t Give Them Money
Retirement should be a period of your life where you don’t have to worry about your finances. Hopefully, you’ve worked hard and invested your money diligently for decades and now you can enjoy your golden years. However, for many Gen Xers, it’s a different story.
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Prudential Financial’s recent 2024 Pulse Of The American Retiree Survey highlighted that the average Gen Xer is “critically unprepared” for retirement. For those Gen Xers who are just a decade away from retirement age, the average 55-year-old American has less than $50K in median retirement savings.
Dubbed “silver squatters”, many Gen Xers will be leaning on their children to afford housing and other retirement costs. So, millennials and Gen Zers who leaned on their older parents may now have to return the favor.
But, if your Gen X parents are looking for financial help in retirement and you don’t have the extra funds, there are still ways to provide help.
Here are five ways to support your Gen X parents ahead of and during retirement even if you don’t have the extra funds to shell out, according to Principal and Northwestern Mutual:
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1. Assess Your Own Financial Well-Being First
Before you try and provide financial advice and help your parents manage their money, be sure to evaluate your own financial well-being first. Ask yourself: Am I in debt? Am I on track to comfortably retire? Do I have the knowledge and expertise to provide help? Your financial well-being should be in good shape before you help your aging parents manage their own finances.
2. Monitor for Signs of Financial Worry From Your Parents
Be sure to monitor for signs of financial worry from your parents, leading up to and during retirement. Some negative signs could be piles of unopened mail on the kitchen table, unpaid bills, unusual or excessive charitable donations, other unusual changes in financial habits, etc. If you suspect something is off, don’t hesitate to ask.
3. Start the Conversation
Talking about finances, especially with aging parents, can be uncomfortable but is also crucial. There’s no way to understand your parent’s finances without talking about them. Being proactive is key to avoiding financial issues down the line, especially once your parents look to you for more help.
4. Learn More About Your Parent’s Finances
Once you start the conversation about your parent’s finances, take time to learn more about the ins and outs of their financial situation. Be sure to find out if they’re behind on any bill payments, if they have any debt, and how close their mortgage is to being paid off. The better their financial situation before they fully retire, the less they may lean on you later on.
5. Research Government Programs
Several income and age-based government programs offer financial assistance to low-income Americans. Most commonly, Medicare provides medical coverage to all Americans over the age of 65 regardless of their financial situation or income. If your parents haven’t yet reached age 65, they might be eligible for Medicaid which provides medical coverage for people of any age with a low income. Your parents may also qualify for other county and state programs that may provide supplemental income, healthcare, food, and sometimes housing assistance. Be sure to do your research to see what kinds of government assistance they’re eligible for.
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