A recent study by Charles Schwab found that between under-saving, and unforeseen costs during retirement, retirees may be woefully under-prepared. In the quarterly Real Life Retirement survey, 44 percent of retirees admitted to supporting at least one individual financially. Most of those retirees said they were supporting children (53 percent), but grandchildren (37 percent) and parents (12 percent) were also named as dependents.
A press release from Charles Schwab announcing the results of the survey also highlighted tips for retirees that could translate into opportunities for advisors. Schwab encourages retirees to put their retirement first, but recognizes that they can’t just ignore their parents; the company recommends retirees think of other ways to help besides writing a check:
- Check up on their retirement entitlements such as Social Security and Medicare.
- * Do they have assets such as a house they could borrow against?
- * Help them establish a realistic budget.
- * Make sure they have an appropriate plan in place for generating income from any existing investments.
This is where a trusted advisor can become a trusted family advisor.