Despite its importance, investors are not sitting down to talk with their parents about a variety of essential topics, including inheritance, estate planning, and long-term care, according to Northwestern Mutual’s 2023 Planning & Progress Study.

In fact, only 29% of 2,740 U.S. adults surveyed said they have spoken with their parents or guardians on the matter, the study said. While more have spoked about long-term care, it was still only 43% of the respondents. 

“That is a very low number,” said Chris Collins, wealth management advisor for Collins Financial, a Northwestern Mutual Private Client Group. “I would like to see that higher.”

One reason for the lack of conversation may be differences of opinion in when these difficult conversations should be held. The sense of urgency around estate planning discussions seems to be negatively correlated with the age of the survey respondents: When asked what the appropriate age is to talk about inheritance and estate plans, members of Generation Z and millennials said 47 and 45 respectively, while Generation X and baby boomers and older said 51 and 55, respectively.

Similarly, the generations cannot agree on a suitable age to begin long-term healthcare discussions. Baby boomers and older say it is 53, while Generation X said it should be 49. Meanwhile millennials said that 40 is the right age and Generation Z said it is 42, according to the study.

“Families should have these challenging conversations at some point, because if they don’t, loved ones may need to make difficult decisions on their own,” said Aditi Javeri Gokhale, chief strategy officer, president of retail investments and head of institutional investments at Northwestern Mutual. “Younger generations are wisely choosing to talk sooner.”

While those conversations might be difficult, they are essential. Advisors should encourage their clients to talk with their parents and if need be, use their financial advisor as the ice breaker to initiate the conversation.

“Use me as an excuse this Thanksgiving or this Christmas or this holiday to ask those questions because they are somewhat uncomfortable for some folks,” Collins said.

During the course of those conversations, adults should find out from their parents if there is a will, if it has been updated, and who will take care of the parents if they become sick. 

The younger generations are more comfortable having conversations with their family about money at younger ages, according to the study. On average, those surveyed said 17 was the age when it was appropriate for children to first speak with their parents about the family finances, according to the study.

Specifically, Generation Z said the age for that conversation should take place at 15 while millennials and Generation X said 16 and baby boomers and older believed 18 was the right age to do it, the study said.

In reality, the actual average age people were when they had that conversation was 19, the study found. Looking at it by generation, members of Generation Z said that they had the conversation at 15, which is the age they thought it appropriate, while millennials had it at 18, Generation Z at 20 and baby boomers and older at 22.

Collins believes that the reason for the interest with the younger generations has to do with the amount of information they receive, including a steady barrage about the troubled economy and high inflation.

“All that stuff gets sent to the younger generation so quickly that I think it is causing them to say ‘OK, so do I need to be talking about this stuff much earlier’,” he said. “I think these new college graduates are getting inundated with it and it’s driving them to have these important conversations.”

The study confirmed the importance of family members, including spouses, and the financial advisor when it comes to seeking financial advice. On average 31% said their most trusted source for financial advice was their financial advisor with 17% saying it is a spouse and 14% saying another family member. 

Among the generations surveyed those were the three top categories with all the generations, except Generation Z, ranking advisors on top of their list. Generation Z trusted a family member more.

“I was encouraged by the value that everyone across the board values in that relationship,” Collins said. “They want to talk to a human being.”

He noted in the study that other sources for financial advice including the news or online sources ranked in single digits for the primary source of financial advice.

The study demonstrates the importance that a financial advisor can have in an individual’s life and how that support can span muti generations. It also serves as a reminder for advisors, such as Collins, to encourage their clients to have those difficult conversations with their parents so that they can protect their health and their wealth for the future.

“I’m going to take these numbers and have it re-convict me and my clients [to speak to their parents],” he said. “I like the fact that younger generations are talking more about finances and they still trust their family and their financial advisor.”