What to Do When a Loved One Isn’t Financially Prepared for Retirement
Not everyone reaches retirement fully prepared, and supporting a loved one in this situation requires empathy and practical solutions. Here’s how to navigate the conversation and help them move toward financial stability.
Start with Compassion
Discussing finances can be sensitive, so approach the conversation with understanding rather than judgment. Ask open-ended questions to assess their financial situation, including assets, liabilities, and income sources.
Evaluate Their Options
A quasi-retirement plan may be necessary if full retirement isn’t feasible. Key strategies include:
- Eliminating Debt – Reducing financial strain by paying down high-interest debt.
- Downsizing – Moving to a smaller home or a lower-cost area to free up funds.
- Supplementing Income – Exploring part-time work or freelance opportunities.
Maximize Social Security
Delaying benefits can increase monthly payouts, and spousal or survivor benefits may provide additional income. Understanding these options can make a significant difference.
Seek Professional Guidance
A financial advisor can help create a realistic plan, optimize investments, and explore tax-efficient income strategies. Helping a loved one isn’t about taking control—it’s about empowering them with the right tools and support to achieve financial stability in retirement.
Casey Smith
President, Wiser Wealth Management
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