Helping your parents plan for their later years 

So your parents are reaching retirement age and whilst they might be busy making plans for all the free time they’ll have at their disposal, you may want to help them make more practical plans for their later years. 

Understand your parent’s later living needs

To help your parents plan for their life after work it is important that you understand their needs. To maintain a standard of living when you stop working, experts estimate that you will require approximately 70% of the income you have been receiving during your working years. 

Sitting down with your parents and discussing how they propose to spend their later years will give you a better understanding of what their financial requirements will be. For example, if your parents are planning on embarking on a trip around the globe, you may want to politely remind them of the cost implications this entails and check they are able to afford such a trip.

Downsize or upsize? 

Planning a retirement, whether it is for yourself or your parents, is predominantly centred on the home. Discussing the various options regarding where your parents are going to live in their golden years is a crucial aspect of preparing for this exciting time in a person’s life. 

Your parents may want to downsize their property so that it is more manageable and less expensive to run, or they may want to upsize so that they have plenty of room for when the grandchildren come to stay.

Later living apartments can be a great place to live during your later years as they offer buyers the chance to remain independent whilst benefiting from a wide range of services. Being the largest constructor of private retirement homes and apartments in the UK, McCarthy & Stone offers a favourable retirement home option and many of its homes have guest apartments attached – perfect for when the family comes to stay.

Advice for your parents 

It can be all too tempting for parents and grandparents to help their offspring financially during big life events; such as going to university or buying a first home. However withdrawing later life savings now can have negative repercussions later on, such as losing tax benefits or having to pay withdrawal penalties.

No matter how much your parents may want to help you out financially, reward them for everything they’ve already done for you and advise them to leave their savings untouched – giving them the chance to enjoy their later years worry-free.