10 Financial Tips for Navigating an Empty Nest

Historical insight — Originally published July 11, 2024. Preserved as historical content; information may have changed.

Having your children move out of the house, leaving you and your spouse with an “empty nest,” is a life-altering experience. It will likely not be a quick adjustment, but preparing yourself mentally, emotionally, and even financially can help you ease into this transition.

Here are some essential financial tips that may help you plan ahead for an empty nest and suggestions to consider for after you become an empty nester.

The first step you may want to pursue is to sit with your spouse, set goals, and discuss your expectations for retirement. It may also be a good idea to create a plan for how the both of you would like to decompress once the kids leave and you become empty nesters. Having goals can give you direction and help you design strategies to work toward these goals.

Putting together a comprehensive budget is beneficial throughout your working life and a critical step in preparation for becoming an empty nester. Budgeting helps you maintain control over your finances. It helps you prioritize spending, mitigate some of the risk of going back into debt from overspending, and offers areas where you can continue to save. Budgeting also may help reduce some of the financial stress and worry that comes with retirement while providing you with a blueprint to stay financially organized.

Debt is a major crutch for your financial health and wellness. It is extremely hard to pay down, creates a financial strain on your pocketbook, and can even cause stress on your relationships. Work on paying down as much debt as possible in the years leading up to becoming an empty nester because it often takes years. A few tips for this include cutting back on eating out and considering free entertainment, like walks in the park and playing tennis at a local court. You can save money in many ways; it just takes thinking outside the box.

One thing you learn while navigating this life is that things happen, even to the most careful people. Sometimes, these challenges are expensive, for example, long-term care later in life. Should some event occur, for those that are prepared, the blow might not be quite as bad. But not having the money to at least help you cover the costs can be incredibly stressful and even frightening. To help mitigate some of the risks of being stuck in this position, put away a few dollars into an emergency fund from each paycheck for as long as you are working.

Foster a manageable financial future with the help of a financial professional. As you approach becoming an empty nester you want to try and be prepared for not only the challenges that you could face, but also to mitigate enough risk to enjoy retirement without unnecessary surprises. You should also make an effort to avoid making emotionally driven decisions in preparation for when your children pack up and move out.

The children have moved out, and you and your spouse are empty nesters. Now is a great time to review your budget. Are any modifications needed? Your expenses will most likely change, and there may be new places you can cut back.

There is a good chance the house you live in correlates with the size of your family. Now it is just you or you and your spouse. You may want to consider downsizing to save money on everything from taxes to heating and gas, and even lawn care.

Even after you become an empty nester, events happen, including marriages, births, and divorces. Staying up to date on your beneficiaries can help lessen stress for you and your family down the road.

After becoming an empty nester, you could still live for potentially decades, so it is helpful to continue managing your savings and cutting expenses whenever possible.

Consider consulting a financial professional. A financial professional can be helpful as you manage this new stage of life as an empty nester. You may want to modify your lifestyle and costs, including downsizing, relocating, cutting expenses, and ensuring there are enough funds for medical and other emergencies or long-term care.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This article was prepared by LPL Marketing Solutions

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