Personal Finance

My boomer parents ran out of money 5 years ago and didn't tell me until the last minute that they have nothing for retirement

Christy Bieber

Published: January 24, 2025 7:24 pm

What happens if your parents have no retirement savings? This is an issue that a Reddit user is currently dealing with. His parents are Baby Boomers who he says ran out of money five years ago, although they didn’t tell him until they were nearly homeless. Since his parents have health issues and age-related limitations that make working impossible, the Reddit user has taken over in providing their support and helping them manage their money. 

The Redditor had his parents sell their large and expensive home to get rid of their substantial debt — despite their initial request that he pay their mortgage for them. The parents are now living in a small cottage near where he lives so he can provide them with extra support. While he said his mom doesn’t like the neighborhood and his dad isn’t thrilled to have someone else paying the bills, the big issue is the impact this situation has had on the Reddit user’s finances. 

Because of this added financial burden, he is now working two jobs. He’s happy that the home he bought his parents has appreciated so he’ll eventually be able to sell it at a profit, but he’s also concerned because his own child will soon graduate and have new expenses he’ll be helping with. Plus, he is committed to saving money for his own future so he doesn’t repeat the cycle and force his son to pay for him later. 

Unfortunately, many Boomers are unprepared for retirement, so this Redditor is not the only one who will be forced to make a difficult choice about how much help to offer. The good news is that the original poster (OP) in this case made some smart decisions as he took over managing money for his parents. Others who find themselves coping with broke Boomer parents may want to follow his lead. 

How much help should you give your broke parents?

Baby Boomers are, unfortunately, woefully underprepared for retirement. Of course, some have plenty to live on. But, the Federal Reserve reported that 43% of 55 to 64-year-olds had no retirement savings in 2022. Many more have some savings, but far too little to last for life while still maintaining a comfortable living standard. As these Boomers leave work, a growing number of their kids will face the issues that the OP in this Reddit thread is dealing with.

Unfortunately, this means the next generation is going to have a tough choice to make: Sacrifice their own security or leave their parents to struggle and potentially face serious hardship.

This is an almost impossible choice, as most people don’t want to abandon their parents during their time of need. However, at the same time, if they spend too much money supporting the previous generation, they could find themselves repeating the cycle and putting their kids in the same tough spot. 

The best and most logical solution is for those who are being asked to help support parents to consider both how much they want to help and how much they can afford. The former may be determined based on their relationship with their loved ones, but the latter should be based solely on their budget after prioritizing their essential expenses including retirement savings. 

Make sure to set limits before you jump in to help

If you are going to help mom and dad during retirement, you also want to do so in a way that genuinely benefits them and doesn’t just throw good money after bad.

The Reddit user was really smart here because he didn’t just start giving his parents money. Instead, he set conditions on the help he was willing to offer.  He made them sell their large house, for example, and he put the house they are now living in into his own name since he was paying for it.

Helping your parents doesn’t necessarily mean allowing them to continue with damaging financial habits or even to continue living the same lifestyle they were on their own dime. If you are going to provide financially, you need to make sure your parents start to be wiser about money going forward so they don’t drive both you and themselves broke. 

Undoubtedly, being asked to help out Boomer parents is not ideal. The OP did a decent job here of making things work, and if you follow his lead, you can also set limits to minimize the damage to your bank account.