Talking to your parents about money isn't always easy. Many people feel uncomfortable discussing their finances, especially with their adult children. Older parents might see it as a reversal of roles and they may not want to open up about their specific financial situation. However, it's important to have honest conversations about money as your parents get older. In this article, we're sharing our top finance tips for older people and their grown up children.
Financial security is something we all aspire to have and to see our loved ones enjoy. However, according to a 2020 study by the Financial Code Authority, around 26% of UK adults have no pension savings. This means that one in four retirees within the UK will have to rely completely on a State Pension after they retire. This makes careful retirement planning all the more important.
Money Advice for Older People
The current State Pension sits at £208.85 per week (a little more than £10,000 per year). Without an additional private pension or life savings, elderly people could struggle to make ends meet throughout their retirement. These facts may seem bleak, but there are simple and effective finance tips that can help older people start planning for retirement early.
Remember, it's never too late to start planning, even if you're already approaching retirement. Here are eight simple finance tips for older people in 2024.
1. Save Save Save!
This may seem obvious. If you save and encourage your family to save, then there will be more money to enjoy when you really need it. We know that saving certainly is easier said than done. After all, things break, bills have to be paid, and "rainy days" often come around sooner than we expect. Nevertheless, we all know that "every little helps". Popping a little bit of money away every week or month will quickly add up and make a huge difference when it comes to retirement.
Here are some helpful finance tips on how to cut your costs and boost your saving power.
- Budget – Make sure you're aware of upcoming costs. If you know what you need to spend, you'll know what's left to save and this will make budgeting much easier.
- Look for deals and discounts – Most retailers (online and in-store) have regular sales, discount codes, and deals. Simply searching "voucher code" on any well-known search engine could save you money.
- Drink more water – Water has loads of health benefits, but it can also help you stop spending money on fizzy or hot drinks. Drinking water can even help you eat less. Having a glass of water before each meal helps you feel fuller for longer.
- Research – Websites such as the Money Saving Expert offer lots of regular tips including the latest money-saving deals. Make sure you stay up-to-date.
- Buy used – Don't be afraid to buy things second-hand, ex display, or pre-owned. Not everyone gets rid of things because they're broken – don't let yourself miss out on a bargain. Buying pre-owned from a charity shop can also help people in need.
It's also worth looking into benefits for the elderly. Even before you reach State Pension age, you could claim things like free or discounted travel, free eye tests and dental care, discounted senior tickets, and more.
You can find more tips in our post about 10 ways to help older relatives save money.
