If your aging parents are approaching retirement with little or no savings, you’re not alone. Nearly half of Americans financially support their parents now or expect to do so in the future, according to a 2025 LendingTree report. This can be especially worrying for adults who are raising their own children and who need to save for their own retirements.
But there are steps you can take to ensure your parents are cared for during their sunset years. Depending on your relationship with your parents, you may want to get involved sooner rather than later.
Where to Start
To start with, experts advise a complete assessment of your parents’ financial health. What are their assets, debts, expenses, and insurance policies? How much Social Security can they be expected to collect? With inflation running at 2.2% annually, purchasing power erodes steadily over a 20-30 year retirement. Understanding this picture can help guide a plan of action.
Many parents have forgotten 401(k) accounts from previous employers or small pensions they’re entitled to claim. For parents still working, maximize catch-up contributions. In 2026, those over 50 can contribute extra amounts to IRAs and 401(k) plans through catch-up provisions. If they’re self-employed, 401(k) and SEP-IRA accounts offer significantly higher contribution limits.
Calculate their expected Social Security benefits at SSA.gov and understand the impact of claiming age. Delaying benefits from age 62 to 70 can increase monthly payments by as much as 76%. The average Social Security benefit for retired workers in 2026 is approximately $2,071 per month, or $24,852 annually. These numbers can be substantially more or less depending on work history.
Also important to remember: Medicare Part B premiums of $202.90 monthly reduce this benefit to $1,868 on average. Healthcare represents the fastest-growing expense category, with spending increasing 6.9% from January to November 2025. For aging parents, this trend is particularly concerning. One Reddit user shared how their mother’s stroke recovery required 24/7 in-home care costing $1.75 million over seven years, while another parent’s Parkinson’s care totaled $350,000 over two years.
Once you’ve done this financial inventory, you can help your parents consider:
- Downsizing housing or relocating to lower-cost areas before retirement
- Eliminating all debt, particularly mortgages, before leaving the workforce
- Applying for assistance programs like SNAP, utility assistance, and property tax relief for seniors
- Multigenerational living arrangements to share housing costs
- Part-time work (With unemployment at 4.3%, opportunities exist)
Living on Social Security alone isn’t easy, but it’s possible with proper planning. Real-world examples show retirees surviving on $21,000 to $36,000 annually when they own their homes outright and minimize expenses. If your parents are divorced, they may qualify for spousal benefits equal to 50% of their ex-spouse’s Social Security amount without reducing the ex-spouse’s benefits—a strategy many overlook.
The Sandwich Generation Squeeze
Supporting aging parents while raising children creates intense financial pressure. One Reddit user described “trying to prioritize investing for our own retirement, kids’ future education, at the same time not wanting parents to be out on the street.” This balancing act can affect major life decisions—from career choices to home purchases to family planning.
Financial advisors emphasize the “oxygen mask principle”: Secure your own retirement first. You can borrow for education or housing, but not for retirement. Be realistic about what you can afford without derailing your own financial security.
There’s a range of things you can do to help your parents. You might be able to pay some of their smaller monthly bills or contribute regularly to a savings account they can access. A much bigger commitment (and not possible for all families) is to have your parents move into your home. All of these decisions require clear communication about expectations and what’s feasible.
Essential Legal Planning
Beyond finances, ensure your parents have updated wills, powers of attorney (both financial and medical), living wills, and proper beneficiary designations. These documents prevent costly legal battles and ensure you can help manage their affairs if they become incapacitated.
The conversation about retirement shortfalls is difficult, but necessary. Start by depersonalizing the discussion—share news stories or statistics before diving into specifics. Approach it with empathy, recognizing that many parents feel defensive about financial decisions made decades ago in different economic circumstances. And remember, your parents likely sacrificed much to make your life possible. It may now be time to repay some of that effort.
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