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Fidelity survey shows parents and their adult children are not communicating about family finances
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-- -- kicks things off with going out to Boston we have Kathleen Murphy the president Fidelity Investments joining us hi Kathleen.
Hello hi good morning.
I you know this isn't really interest in top good morning survey that you -- part of showing -- adult kids are very uncomfortable.
Talking to their parents about their investments their retirement planning there elder care all of that right.
It's yeah we we did this survey because we saw a real increase in the number of our clients both adult children whether they're in their thirties 40s50s and -- parents.
Who while they have a as a top priority to have these kinds of conversations.
Simply have trouble.
Getting that conversation started the particularly with their children.
And what why is that why are they having trouble it almost seems like natural conversation -- -- What we -- found is that the parents.
Don't -- talked him into much detail about their financial situation.
They don't -- but for example what they're -- let their children know how much they're going to give them an as an inheritance.
The children or don't want to appear pushy they've got and they think it's in the quote none of their business and so while they understand the importance of this from our retirement planning elder care planning perspective.
They both have trouble getting these conversations started.
Okay that's understandable it's especially when you're talking about a will and and death it is uncomfortable.
However what are they doing anything so those issues can be discussed -- bringing in a third party for instance.
Well it is it's interesting.
Both parents in adult children feel much more comfortable talking to a financial professional over 60% of them would prefer to talk to and a financial professional.
Because that financial perfection professionals objective it's not as emotional.
And so if the financial professional can help get these conversations started between the parents with children that's great.
What we have found though is that the parents and children have these conversations.
83% of them say they have much greater peace of mind as a result when they actually pushed through -- have the conversation.
And most importantly.
It becomes much more clear to -- adult children what the objectives and intentions and wishes of the parents are whether it's in.
Health care planning retirement planning or estate plan.
Kathleen -- -- be some -- communications out there between adult kids and their parents whatever it was common.
-- the three that we saw that were most extreme.
We're first of all 97%.
Of children and the parents disagree on whether the children will have to help them with the health care issue.
-- for the parents retirement.
All most of the adult children also underestimated the inheritance that they would get from a parent as part of the estate planning process and also up.
Quarter of the children thought that they would need to help the parents financially and retirement while only 3% of the parents thought they would need financial help during their retirements.
We're saying kids are under estimating their inheritance.
They're underestimating their inheritance and there probably overestimating.
The amount of money or help that they'll need to give the parents from a health care or financial perspective so they're just not on the same page but that's.
That's good in a way.
It's good in terms of it at and in the law of averages.
That.
The parents might do it be able to do more to take care of themselves and -- all too often we -- the situation -- for example some health -- she comes up unexpectedly.
There's no health care proxy.
There's no living well.
We also see a lot of situations where parents underestimate.
How how much they will need to live and retirement for thirty or forty years.
Yeah well thanks for bringing us all this information the intergenerational.
Miscommunication among families and how you really need to be more in -- And anybody who's had any felon member sick and unexpectedly everybody know if you should have that living well in -- and if you -- -- be resuscitated what do they call that I'm blanking right now DNR not resuscitate.
All of these things happening in our industry is an -- up huge decisions to making that might not be prepared -- it.
We're gonna play what set up now and Kathleen Murphy we thank you so much.
For joining us and bringing us other results of that survey so parents -- your kids -- you know you have more bringing a third party.
