Kids cost a lot to raise. No kidding.
So when they’re finally out of the house, smart parents decide it’s time to play catch up with their retirement savings accounts.
We talked to financial journalist Greg Daugherty about how empty nesters can make the most of this newly liberated phase of their lives, in an article he wrote for Considerable, an online personal finance site for consumers in their 50s and 60s.
“It’s possible to boost your retirement nest egg by a six-figure sum,” says Greg. The trick is making sure your spending doesn’t take flight along with your kids.
If you’re already set for retirement, you can kick back and enjoy the freedom of being empty nesters. (How to tell? Check out our handy retirement ratios in Greg’s article).
For people who are behind in their retirement savings, says Greg, “the empty nest years offer a rare chance to catch up.”
But to do that, you may need to give the kids a financial shove toward adulthood.
“It can be tough to get kids off the payroll,” Mari told Greg. “You have to remember that your job as a parent isn’t to supply everything your adult children need but to help them become independent.”
For more insights on savings, kids, and making the most of your empty nest freedom, check out Greg’s article!