Adult childrens’ knowledge of retired parent finances — November 2010, reviewed January 2013

How much do adult children know about the income and expenses of their retired parents?  This can be an important issue when health changes requires caregiving.

Recent research by the nonpartisan Employee Benefit Research Institute asked this question.  The results, part of the 2010 Health Confidence Survey, were released in October 2010.  Here are the findings:

• Adult children with retired parents were asked if they had detailed discussions with their parents about their parents’ income and expenses.  Slightly less than half of the children reported they had those discussions.
• Retirees were asked whether they had detailed discussions about their own income and expenses with their children.  Slightly more than half of retired parents reported that they had those discussions.
• Adult children with retired parents were asked if they knew the approximate amount of their parents’ income.  Again, less than half or 42 percent of the adult children reported they did know.
• Retirees were asked whether their children knew the approximate amount of their income.  Well over half or 63 percent of retired parents reported that they thought their children knew this information.

In essence the study showed that adult children felt they knew less about their retired parents income than the parent felt their children knew.  This is an important factor to remember when having family caregiving discussions.  For full results of the 2010 Health Confidence Survey go to the website www.ebri.org.