Personal Finance

Outside of Social Security, my parents have absolutely nothing for retirement and I'll be stuck financing their retirement - is this normal?

Christy Bieber

Published: January 17, 2025 11:21 am

How far can, and should, you go to help out your parents? This is an issue that a Reddit poster is grappling with now. His mother is ill and can’t work and his dad is 72 and wants to stop working — but his parents have no savings outside of Social Security. They are in debt, he is paying for their vehicle, and they are struggling to find an affordable place to live.

This. is a tough situation for the Redditor to be in, but it’s one many young people may face as Baby Boomers move further into retirement without the funds they need for the future. 

Is it normal for retirees to have no savings? 

The Reddit poster’s parents are far from the only retirement-age seniors who simply do not have the money they need to get by. Vanguard’s How America Saves report shows that the median balance in defined contribution plans is just $88,488 among retirees 65 and over. This is not enough to live on, and it’s only the median — which means many people have far less. In fact, the AARP reports that one in five Americans 50 and over have $0 for retirement.

The problem for the Redditor’s parents, and other retirees in this situation, is that Social Security is not enough to pay the bills. The retiree’s parents get a combined $3,400 between the two of them, while the average retiree in 2025 receives $1,976 per month in benefits. These income levels put seniors right around the federal poverty level, or just a little bit above it. 

With the healthcare expenses that often come with retirement, living on Social Security alone isn’t sustainable even in the best of circumstances. And the Redditor’s parents are not in the best circumstances given that they do not have a paid-off home or a car they own outright and they are in debt. 

What should the Reddit poster do?

Coping with parents who are unprepared for retirement is a huge challenge for children, and this Redditor has been put into a difficult situation. He’s already contributing as much as he can, and he’s made clear that doing any more would be a financial burden he can’t handle. Yet, his parents are still in trouble. 

Sadly, while he may want to help his parents financially, he does need to set firm limits because otherwise, his own future security could be in jeopardy. He could someday end up burdening his children in the same way he has been burdened.

Instead of giving up his chances at building stability, he needs to make a detailed budget, identify exactly how much he can help his parents while still accomplishing his goals, and stick to it. A financial advisor may be helpful in doing this calculation. 

After deciding on the limits of his financial support, he can help his parents in other ways including:

• Assisting them in determining if they may be eligible for Supplemental Security Income to subsidize their Social Security benefits and helping them apply if they are. 
• Helping them to explore programs for low-income senior housing
• Working with them to sign up for other government benefits such as SNAP
• Helping them to deal with their debt by exploring the possibility of debt settlement or bankruptcy depending on how much they owe.

Any children who have been put into this position by their parents should follow the same paths.

Breaking the cycle of saving too little is crucial to avoid holding future generations back, and this Reddit poster has seen first-hand the consequences of being financially unprepared. He has the chance to make different choices. That starts with setting firm limits and finding non-financial ways to help his parents cope with their money mistakes.