The Biggest Retirement Challenge for Boomers Might Be Talking to Their Kids

Older generations are more likely to stay hush-hush about their finances compared with younger ones.

In a Nationwide survey of more than 2,000 investors ages 18 and over with at least $10,000 in investable assets, more than one-quarter (27%) of baby boomers said it wasn't necessary to have conversations with relatives about planning for financial security in retirement. By contrast, just 8% of Gen Z and 12% of millennials said the same.1

If you're hesitant about having conversations regarding your finances, consider taking it slow: try having multiple discussions to ease into it and make everyone comfortable.

While conversations about money can be uncomfortable, Kate Feeney, a certified financial planner (CFP) at Summit Place Financial Advisors, advises people to have conversations with family sooner than they expect, especially on topics like estate planning.

"Many clients assume estate planning is only relevant later in life or after a major health event, but the most productive conversations tend to happen when families still have time, flexibility, and clarity to make thoughtful decisions together," wrote Feeney in an email.

Financial planners say they are often the ones to broach these conversations, but they recommend people be proactive about it. In the Nationwide survey, nearly half of baby boomers and older said they would rather keep these family conversations private, without an advisor facilitating, compared with just 10% of millennials.

Katrina Soelter, a CFP and founder of Avise Financial, suggests that adult children start from a place of care.

"It's important to frame it in a way that will work for your loved one," wrote Soelter in an email. "[For example], I want to make sure I honor your wishes if you were ever in the hospital and couldn't advocate for yourself."

And you shouldn't think of these conversations as one-and-done. Susan Jones, a managing partner at Sorelle Wealth Partners and CFP, suggests families have multiple conversations to make things less awkward.

"Keeping the initial discussion limited to the fiduciary roles and related duties can create baseline knowledge and help children get comfortable with conversations that include death," Jones wrote in an email.