Retirement as a Family Affair

The most financially successful people treat money management as a family matter. They talk to their children about money, involve them in financial decisions and have honest conversations about inheritance planning, retirement goals and caring for aging parents.

Women face particular challenges in retirement planning. Women in the U.S. typically retire with lower Social Security benefits than men because they tend to work fewer years. The same applies to company pensions and workplace retirement plans – a five-year career interruption can produce a sharply lower retirement income decades later. Women considering career breaks should carefully weigh the long-term impact: reduced Social Security benefits, lost pension accruals and years of missed retirement plan contributions.

Families also need honest conversations about what happens when parents age. Half of couples spend their income down to the poverty level after one spouse has spent just six months in a nursing home. Planning for this reality across generations – including researching long-term care insurance and discussing options openly – is one of the most important financial conversations a family can have.