The only thing more difficult than financial planning appears to be discussing it with loved ones. Money has long been labeled as a taboo topic among Americans, but families across the nation are struggling when to have detailed conversations about important financial topics.
According to a new study by Fidelity Investments, almost two-thirds of parents and their adult children disagree when to discuss retirement preparedness, eldercare, and estate planning. Parents prefer to wait until they retire to talk about such topics, while children want to hold conversations well before their parents retire or experience health issues. In fact, 40 percent of parents indicate they have not had detailed conversations with family members about covering living expenses in retirement, and another 15 percent have not had any conversations at all.
Unsurprisingly, there is a clear need to hold money discussions as denial runs deep. Fidelity finds that 56 percent of adult children say their parents often worry about financial security, but only 23 percent of parents admit to doing so. Yet 70 percent of parents confess they don’t know exactly how much money they will have to live on in retirement, up from 65 percent just two years ago.