A Grandparent's Guide to 529 Savings in Retirement

Saving for my grandchildren's education has always felt like one of those decisions that’s both practical and deeply personal. Whether they choose a four-year college, community college, trade school, apprenticeship, or another post-secondary path to continue their education, I know it comes with a cost. It was tempting to wait until they're older to start saving, but I also knew a 529 plan was an opportunity to get ahead of those future expenses. Even more importantly, these savings will provide my grandchildren with something priceless: support, flexibility, and the opportunity to pursue the path that's right for them.

What makes this especially meaningful for me is that I started saving for their future education long before preparing for my retirement. My grandkids, five of them, have accounts in the GET Prepaid Tuition Plan, one of Washington’s 529 education savings plans, and we as a family have been contributing to them through the years. Starting early matters because it’s not just putting money aside, it is letting time do some of the heavy lifting. Even when my contributions weren’t huge, steady saving over time is making a real difference. And because it’s already underway, retirement isn’t going to be a pause button. It will be a continuation of a habit.

September is National College Savings Month, but luckily, savings in a 529 plan can be used for much more than college. As a grandparent, I realize I can’t predict every detail of my grandkid’s future. One may head to a four-year college; another might be drawn to community college or choose a skilled career pathway, which are all great opportunities. Fortunately, a 529 plan isn’t about knowing their exact destination - it’s about keeping the door open and reducing the need for my grandkids to rely on loans or take on other debt when the time comes.

If you’re retired (or even mostly retired), you might be thinking, “How can I keep saving if my paycheck is different now?” Here are a few practical ways that are working for me, and other grandparents I know:

• Set a small automatic monthly contribution you can live with, even if it’s modest.
• Use “raise-free” extras such as a tax refund, birthday money, or a little left over from each month. 
• Rebalance your budget quarterly and move a bit from other buckets where you consistently spend less. 
• Make saving a family conversation. Sometimes other relatives will want to add to an account instead of buying more toys. 

Ultimately, these contributions are about more than money. They're a way of showing my grandkids that I believe in them and their future. Every contribution, no matter the size, is an investment in their future and a legacy of support that will last long after the check is written.

Jackie Ferrado
WA529 Associate Director for Community Engagement, proud parent and grandparent.