What Gen X Needs to Know About Their Aging Parents' Finances
These six steps can help future caregivers know where aging parents stand financially as well as help them to avoid surprises that could imperil their own retirement.


According to a report from the National Caregiving Alliance, more than 11 million Americans are caring for an adult family member while also raising children at home. This sandwich generation, primarily comprised of Generation X couples, faces the challenge of balancing multigenerational family responsibilities while catering to their own retirement planning needs.
Parenting is neither cheap nor easy. When you layer in the unplanned expenses that can come with supporting elderly parents, the situation can quickly derail or delay a couple’s retirement plan. Yet, according to a Wells Fargo survey, over a third of Americans with aging parents have not discussed their parents’ current or future financial situation.
That is why Gen X needs to understand their parents’ finances intimately. So here are some practical steps Gen X should take, ideally while their parents are still living independently, to empower themselves and their aging parents while helping to avoid unpleasant financial surprises in the future.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Know what assets they have
The first step in understanding your parents’ finances is to know what assets they have. This includes any retirement accounts, investment portfolios, real estate and other assets that may be part of their estate.
You should also know their debts, including mortgages, credit cards and other loans. This information can help you understand their financial situation and plan for their future needs.
The website eForms offers a simple, complimentary form to assist with this process.
To conduct a more custom and comprehensive asset audit, consider consulting with an estate attorney or financial planner.
Understand their income
It's also important to understand your parents’ income sources, such as Social Security, pensions and any other sources of retirement income. This can help you plan for their future expenses and ensure they have enough income to support their needs.
You should also know if they have any part-time or freelance work that provides additional income.
Discuss their estate plan
Another critical area to discuss with your parents is their estate plan. This includes their will, any trusts they have established and any other legal documents that outline their wishes for their assets after they pass away.
Yet, according to Caring.com’s 2023 Wills Survey, less than half of Americans over the age of 55 have their estate planning documents in order. Understanding their estate plan can help you prepare for potential inheritances and ensure their wishes are fulfilled.
Plan for healthcare costs
As your parents age, they may need additional healthcare support, including long-term care. This can be expensive, and planning for these costs in advance is essential.
You should discuss with your parents how they plan to pay for any potential healthcare costs and help them develop a plan to ensure they can afford the care they need.
Be aware of potential financial abuse
Unfortunately, older adults are often targeted by scammers and fraudsters who try to exploit them for financial gain.
According to the FBI's Internet Crime Complaint Center, elder fraud cost Americans over the age of 60 more than $1.7 billion in 2021. Therefore, it's important to be aware of the signs of financial abuse and take steps to prevent it from happening to your parents. This may include monitoring their accounts for any suspicious activity or helping them avoid scams and fraudulent schemes.
Work with a financial adviser
Finally, it's a good idea to work with a financial adviser specializing in retirement planning and intergenerational wealth transfer. A financial adviser can help you navigate the complex financial landscape of caring for aging parents while also managing your own retirement savings.
In addition, they can provide guidance on estate planning, retirement savings, tax implications and other financial matters that may arise.
It is also important for you to form a relationship with your parents’ financial adviser if they have one. The financial adviser can assign you as a trusted contact on your parents’ investment accounts or insurance policies. As the trusted contact, you can be alerted if an elderly parent changes behavior, such as makes requests for large withdrawals. You can also be contacted if a parent misses payments — such as on a long-term care insurance policy — or simply does not respond to requests.
As Gen Xers take on the role of caring for their aging parents, it's essential to understand their finances and plan accordingly. By following these tips and working with a financial adviser, you can help ensure that your parents' financial needs are met and that you are prepared for any potential financial challenges that may arise.

Sara Stanich is a Certified Financial Planner practitioner, Certified Divorce Financial Analyst (CDFA), Certified Exit Planning Advisor (CEPA) and founder of Cultivating Wealth, an SEC-Registered Investment Adviser. Sara has been a financial adviser since 2007, which followed 12 years in marketing roles and an MBA from New York University. She is a frequent source for the financial press, and has been quoted in Investor’s Business Daily, U.S. News and World Report, and CBS News. After over 25 years in New York City, Sara recently moved to the beach with her husband, three kids and Labrador retriever. She frequently blogs at cultivatingwealth.com.
-
-
Mortgage Demand Ticks Up for First Time in 3 Weeks
Weekly mortgage applications improve despite the 30-year fixed rate edging back up to its highest level in 4 weeks, economist says.
By Joey Solitro Published
-
How To Get the Best Savings Account Bonuses
By opening the right savings account today, you could be maximizing your earnings through both compound interest and cash bonuses.
By Erin Bendig Published
-
Inflation and Retirement: Five Ways to Soothe Your Worries
Sometimes you can deal with inflation and economic turbulence by not doing anything at all, but there are considerations for retirement savers to keep in mind.
By Michael J. Faust, CFA Published
-
Remember: Retirement Accounts Are Not All Taxed the Same
How you handle your pre-tax and after-tax accounts can make a big difference in your income in retirement and the legacy you leave.
By Jerry Golden, Investment Adviser Representative Published
-
How to Embrace Your Financial Wellness This Fall
Economic uncertainty can take a toll on your mental health if you don’t stay on top of your financial wellness. Here’s where to start.
By Greg Ward, CFP® Published
-
Four Threats to the Distribution Phase of Retirement
Keep challenges such as inflation, market volatility and more in mind when it’s time for you to shift from saving for retirement to spending.
By Cliff Ambrose Published
-
Using a 529 Plan? Here’s What to Keep in Mind
As the school year progresses, ensure you’re using the money for qualified expenses and keeping track of documentation. Taxes and options for unused funds are also considerations.
By Julie Virta, CFP®, CFA, CTFA Published
-
Why We Need Medical Professionals in Investing
Medical professionals who pursue careers in investing can help support the biotech companies that create treatments that improve, and save, lives.
By Kyle Rasbach, PhD, PharmD Published
-
Uncertain Times Call for Creative Estate Planning Strategies
Flexibility in the estate planning process is key so you can adjust your plans to address changes in your goals or accommodate legislative shifts.
By Paula Nangle, CFP® Published
-
Older Doctor Just Wants to Work, But New HR Boss Changes the Rules
How do you respond when a new person comes in and won’t honor the agreement you made with their predecessor?
By H. Dennis Beaver, Esq. Published