Hobart Financial Group has made a comment on an article published by USA Today on November 17th, which details a new study suggesting many American families do not think discussing retirement savings plans are a priority.
According to the USA Today article titled "Survey: Americans do not like to discuss finances," a new study conducted by Merrill Lynch titled "Family & Retirement: The Elephant in the Room" found that over 70% of participants over the age of 25 have not discussed retirement plans with their parents.
The study also revealed that 56% of parents over the age of 50 have not enlightened children on various subjects involving retirement, such as wills, health directives and inheritance plans.
The article says not discussing these issues with family members can be detrimental to the life planning process down the line. Healthcare costs are one of the biggest financial burdens many retirees have to face.
However, this topic is hardly discussed between family members. While most people think they won’t need long-term health care, the new study says that 70 percent of people 50 years of age or older will need costly long-term care.
Chris Hobart, CEO of Hobart Financial Group, said: "The survey says that more than 90 percent of people are not financially prepared to take care of a close relative or parent that needs long-term care. This is an alarming number considering most people will have to think about this in the future.
Hobart says families need to be on the same page when it comes to retirement planning.
Hobart added: "Retirement planning is not just for the individual. It’s about the entire family. Children need to think about their parents and how they can help support aging family members. Parents need to think about the expenses of supporting adult children. Retirement doesn’t just affect one person — It affects the entire household and the whole family. Parents should be educating their children about these subjects, so that when the time comes, the kids are ready to take on the responsibility that comes with retirement."