Financial Planning for Older Adults: Breaking the Taboo and Securing the Future

Talking about money is one of the biggest taboos in our society, yet financial planning is one of the most crucial aspects of aging well. Many older adults spend their entire lives building wealth, only to face the reality of transitioning to a fixed income, rising healthcare costs, and concerns about how long their money will last.

At Engaging Aging, we specialize in helping older adults navigate life transitions with clarity and confidence. Recently, we sat down with financial planning experts Tom Alessi and Craig Richardson from the Aries Foundation for Financial Education to tackle some of the biggest financial concerns facing older adults today. Their insights were eye-opening, and we’re excited to share key takeaways with you.

Why Is Money Such a Taboo Topic?

Many of us were raised with the belief that discussing money—even with close family members—is inappropriate. This cultural reluctance has created generations of adults who lack basic financial literacy. Unlike other fields, personal finance is rarely taught in schools, leaving people to pick up information from parents, friends, or financial professionals—sometimes with mixed results.

For older adults, the stakes are high. Many are navigating retirement planning, estate management, and rising long-term care costs, yet they may avoid discussing their financial situation out of fear of judgment or past negative experiences with financial advisors.

Finding the Right Financial Professional

One of the biggest hurdles to proper financial planning is finding the right advisor. Many older adults have had poor experiences in the past, leading them to distrust financial professionals or avoid planning altogether.

Craig and Tom emphasized that choosing an advisor is about fit and trust. The best financial professionals:

• Make you feel comfortable discussing your concerns.
• Offer education and options rather than pushing sales or transactions.
• Allow you to involve family members, attorneys, or other trusted advisors.
• Are transparent about their experience, credentials, and any complaints against them (which can be checked through BrokerCheck at FINRA.org).

If a financial advisor is doing most of the talking rather than listening to you, that’s a red flag.

It’s Never Too Late to Start Planning

A common misconception is that financial planning is only for the young. In reality, it’s never too late to assess your situation and create a plan that ensures long-term financial stability.

The key to financial confidence in retirement? Cash flow. Many people focus only on how much money they’ve saved, but what truly matters is how that money is distributed and managed over time. As Craig pointed out, “Retirement is all about cash flow. Cash flow equals certainty. Certainty takes the pressure off of money.”

Given increasing life expectancies, retirees today might spend 30+ years in retirement. Ensuring that assets are allocated wisely can prevent outliving your savings.

Rising Healthcare Costs & Long-Term Care

One of the most pressing financial concerns for older adults is how to cover healthcare and long-term care expenses. Assisted living and nursing home costs are skyrocketing, with some high-end communities costing $15,000 to $20,000 per month. Even more affordable senior living options or home care services can be expensive over time.

What many people don’t realize is that the #1 fear among retirees isn’t running out of money—it’s cognitive decline. The thought of developing dementia or another condition requiring extensive care is far more concerning for many than financial loss. However, the financial burden of such care is a close second.

Craig and Tom recommend exploring hybrid financial products, such as life insurance policies that include long-term care benefits. These allow funds to be used for care if needed, but if care isn’t required, the money can be passed on to heirs.

Planning for Life’s Transitions

Many older adults assume they’ll remain in their homes forever, but life often unfolds differently than planned. As part of a holistic financial strategy, it’s essential to consider:

• Housing transitions: Aging in place vs. moving to a senior living community.
• Estate planning: Ensuring assets are structured in a way that benefits heirs.
• Spousal planning: When one spouse manages the finances, it’s crucial that the other is equally informed in case of an unexpected loss.
• Legacy planning: Exploring ways to pass wealth efficiently to the next generation, including the strategic use of life insurance and trusts.

Communication & Family Dynamics

Another major factor in financial planning is family involvement. Many older adults want to pass wealth to their children but also need to ensure they have enough for their own care needs. Some families avoid these conversations entirely, leading to uncertainty when major life transitions occur.

Tom and Craig emphasize the importance of having open conversations with loved ones—not just about inheritance, but about how care needs will be addressed. Many older adults assume their children will care for them, but have they explicitly asked? Do the children have the means and ability to do so? These are the discussions that must take place before a crisis occurs.

Additionally, financial professionals should provide a judgment-free zone where both spouses can express their views and financial goals. It’s not uncommon for couples to have very different outlooks on money, and part of a financial advisor’s role is to help align those perspectives.

Don't Be the Story—Take Action Now

One of the most powerful takeaways from our conversation was this: Don’t be the cautionary tale. Too many families share stories about loved ones who didn’t plan ahead and suffered financial hardship as a result.

If you take one thing from this discussion, let it be this: Start the conversation now. Ask questions. Be proactive. Work with professionals who truly listen and tailor their guidance to your unique needs. And above all, plan for the unexpected.

Final Thoughts

Aging doesn’t have to be a time of financial stress. By creating a strategy that prioritizes cash flow, long-term care needs, and legacy planning, older adults can move forward with confidence, knowing they have the resources to support their desired lifestyle.

For more insights on navigating financial planning and aging transitions, check out the Aries Foundation for Financial Education at www.AriesFoundation.org, or reach out to us at Engaging Aging for expert guidance tailored to older adults.