Financial Planning for Empty Nesters: What to Do After the Kids Leave Home
Becoming an empty nester is a big life change. After years of focusing on raising children, your house—and your finances—suddenly feel different. While this can be an emotional time, it’s also a great opportunity to revisit your financial goals and make smart decisions for the future.
Here’s how to take control of your finances when the kids move out.
Revisit Your Monthly Budget
Once your children are no longer living at home, your household expenses may drop. You may no longer be paying for things like groceries for four, school activities, or car insurance for teenagers.
Now is a great time to look at your monthly budget and ask:
- Where can I reduce spending?
- Can I redirect extra money toward savings or debt?
- Do I want to downsize my home or make lifestyle changes?
Even small adjustments can make a big difference over time.
Increase Your Retirement Savings
Many empty nesters are in their peak earning years and may finally have room in the budget to save more for retirement. Take advantage of this time by:
- Maxing out your 401(k) or 403(b)
- Contributing to a Roth IRA or Traditional IRA
- Catching up if you’re over age 50 (you can contribute more each year)
The more you save now, the more flexibility you’ll have later.
Rethink Life and Health Insurance
When your kids were younger, life insurance was essential to protect them. But now that they’re financially independent (or close to it), you might not need as much coverage.
Review your:
- Life insurance policies—do you still need them?
- Health insurance—can you switch to a lower-cost plan if dependents are off your policy?
- Long-term care insurance—now might be the time to explore options while you’re still relatively young and healthy
Update Your Estate Plan
Your estate plan may be out of date if you haven’t looked at it since your kids were small. Now is the time to:
- Update your will
- Review beneficiary designations on retirement accounts and insurance policies
- Consider setting up a trust if you want more control over how assets are passed on
Make sure your children (now adults) know your wishes and where important documents are kept.
Talk to Your Adult Kids About Money
Just because your kids are out of the house doesn’t mean your financial relationship with them is over. It’s important to talk with them about:
- Student loans or remaining financial support
- Expectations around helping with future care
- What kind of financial help, if any, you are still willing or able to give
Clear communication now can prevent tension later.
The Bottom Line
Empty nesting is a chance to refocus your financial goals and take action. With fewer daily expenses and more flexibility, you can strengthen your retirement plan, reduce unnecessary costs, and build peace of mind for the future.
Want help creating a financial plan for this new phase of life? Schedule a free consultation today, and let’s make a plan that fits your goals.
*We believe the information provided is accurate, but it’s not intended as tax or legal advice and shouldn’t be used to avoid federal tax penalties. For guidance on your specific situation, please consult your own tax or legal advisor. If you’re doing estate planning, it’s important to work with professionals, including your attorney or tax expert. This content does not include specific investment advice or recommendations to buy or sell any securities. Also, while strategies like asset allocation and diversification can help manage risk, they do not guarantee profits or protect against losses in a declining market.
