4 Things To Discuss With Family Before You Retire
Written by
Nicole Spector
Edited by
Molly Sullivan
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Retirement is, in so many ways, a personal journey. It’s up to you to organize your finances, stay financially informed, take extra good care of your health and ensure that you have engaging hobbies to occupy your ample spare time. But there are ways in which retiring is a family journey, too.
Your spouse, kids, grandkids and possibly even your siblings and very good friends play leading roles in your life — and will perhaps do so even more so in your retirement than in your working years. It’s important to keep them fully in the loop of what your golden years will look like and to clue them in on important factors.
“As you approach retirement, open communication with your family is essential to ensure everyone is on the same page,” said Melissa Murphy Pavone, founder at Mindful Financial Partners. “These discussions are not only about your goals and expectations but also about how your financial plans align with them. Addressing these topics early can prevent confusion and conflict later while ensuring your wishes are honored.”
Discuss the following four things with your family before you retire.
The Financial Professionals in Your Life
Who is your financial planner? Your accountant? Your estate planning attorney? Your life insurance agent? Your family needs to know.
“It’s vital to share who your key financial professionals are,” Pavone said. “Ensure your family knows how to contact them and understands their roles in managing your finances. This is especially important in case of emergencies, incapacity or transitions.”
The Location of Financial Documents
Your family needs to know where to find important financial documents “such as wills, trusts, power of attorney, insurance policies and account statements,” Pavone said. “Consider creating a secure folder or digital vault with this information. Having these documents organized and accessible reduces stress and confusion during high-pressure situations like a medical emergency or death.”
Your Legacy and Estate Planning
Your family needs to be kept fully in the loop of your estate plans and final wishes. So, if you’ve procrastinated handling this, act now — for their sake.
“Clarify your wishes regarding your assets, inheritance and end-of-life plans,” Pavone said. “Share details about your will, trusts and any beneficiaries named on accounts. This ensures your family understands your intentions and avoids potential conflicts or surprises. It’s also a good opportunity to discuss charitable giving or other legacy goals.”
Your Long-Term Care Plans
There’s roughly a 70% chance that after turning 65, you’ll eventually need some form of long-term care. This can be incredibly expensive and Medicare doesn’t cover nonmedical long-term care.
“On average, men require care for about 26 months, and women for 44 months,” said Brandon Blakeley, co-founder at Mirador Living. “With the average cost for facility care running about $4,000 per month, the total bill often reaches upwards of $280,000. That’s no small expense, but it’s one that many families are unprepared for.”
Make sure that you and your family have a solid idea of how long-term care will be provided for you in the likely event that you’ll need it in retirement.
“Families usually have three choices,” Blakeley said. “They can move to a place where care is cheaper, rely on family members to step in as caregivers or have more money come out of their kids’ inheritance. For most, covering these costs means selling the family home, which can be an emotional decision. Unplanned expenses and unspoken expectations about care or moving can lead to major conflicts among family members, so it’s better to have honest conversations early to avoid misunderstandings.”
Talking With Family Isn’t Just a Nice Thing To Do — It’s Your Responsibility
Talking with your family about serious financial topics can be difficult, but these conversations are necessary and it’s best to have them sooner than later.
“Having open and transparent conversations about these topics with your family before you retire is an act of care and responsibility,” Pavone said. “It ensures your financial plans are understood and that your family can support your wishes effectively. Be sure to incorporate your CFP, CPA and estate planning attorney in the conversation.”
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