To Top

Think Your Loved One Is Behind on Retirement Savings? Tips On How to Help

We know money trouble is a difficult subject to talk about with loved ones but, who better to watch out for them than you? If you have a sneaking suspicion that someone is behind on their savings, your doubts must be coming from a place of understanding.

According to a Bankrate national poll, 52% of workers stated that they were behind on their saving goals for retirement. On top of that, 20% stated uncertainty over how much funds would be sufficient, 16% stated they had enough for their retirement years, with an additional 11% stated they would save more if need be.

Pexels | Every working person should sit down and budget their retirement funds properly

The subject is delicate, we know. But, tackling it with sensitivity will get the job done. Here’s how to help a loved one navigate their retirement savings.

Tip 1: Have the discussion in a comfortable place

There’s a time and place for everything – and Christmas eve surrounded by 15 family members gawking back and forth is no time to bring up such conversations. The last thing you want is for your loved one to feel trapped and render you untrustworthy for such discussions. Pick a private place where no one can intrude on your conversation.

Pexels | Always discuss serious matters in a comfortable and relaxed setting

Tip 2: Be sensitive about the subject

Remember that adopting a holier-than-thou attitude will get you nowhere. You need to make it known that you’re there to help. You have no idea how your loved one feels about their financial situation. They could get angry, frustrated, defensive, or even guilty and ashamed about being so behind on their milestones. Only empathy can help you out here. You might even know exactly what they’re feeling from having gone through it yourself.

Tip 3: Ask about a 401(k) plan

The best way to save up big time for retirement is by contributing regularly to the 401(k) – make sure they are aware of this. Encourage them to benefit as much as possible from this tool. If their employer offers the plan, push them to make as high contributions as possible so that the employer matches the same.

It’s free money, after all! Why not reap benefits as much as you can?  In case their employer doesn’t offer a 401(k), encourage them to look into other types of plans like 457s or 401(b)s. Their final choice should be setting up an IRA or Roth IRA account.

Pexels | Get your loved one in touch with an expert to get their retirement account set up asap

One Last Thought

This is a good metric to measure your savings for retirement:

  • Age 30: Equal to your salary per annum
  • Age 40: 3x your salary per annum
  • Age 50: 6x your salary per annum
  • Age 60: 8x your salary per annum
  • Age 67: 10x your salary per annum

It’s very likely that your loved one may be freaking out about their financial situation right now. It’s also your job to assure them that they can catch up if they try.

More in Family

You must be logged in to post a comment Login