Personal Finance

My baby boomer parents didn't save for retirement and I have plenty of money - how can I help them if they are being stubborn?

Maurie Backman

Published: March 1, 2025 9:18 am

It’s often the case that parents help their adult children financially for as long as they can. But sometimes, the roles can get reversed.

That seems to be the case for this Reddit poster. Here, we have someone who’s well off financially and is concerned about their parents’ retirement prospects.

Their parents never managed to save for retirement. And they’re not alone. AARP estimates that 20% of U.S. adults aged 50 and over have no retirement savings whatsoever.

But still, not having savings put the poster’s parents in a precarious financial position.

Without savings, they may be forced to retire on Social Security alone. And with the average beneficiary today getting a little under $2,000 a month, that doesn’t exactly make for a robust retirement income.

The poster wants to help their parents, but the parents don’t seem to want to take the money. And that puts the poster in a tough situation. Still, it doesn’t mean all is lost.

It’s time for the tough love

It’s understandable that this poster’s parents wouldn’t want to take a handout. But without savings, they may be forced to make serious lifestyle cuts. So if the poster can afford to help out, they should.

What the poster can do is set up an investment account on their parents’ behalf. Ideally, it should consist of at least some income-producing assets their parents can live off of, like bonds and dividend stocks. REITs, or real estate investment trusts, are another option worth looking at since they often pay higher-than-average dividends.

The poster should sit their parents down for an open conversation and explain that they’re happy to offer this money as a gift. They should also encourage their parents, who are in their early 60s and still working, to start building some savings of their own now, even if it’s only a small amount.

The good news is that 401(k) plans have a special catch-up provision this year for savers aged 60 to 63. If the poster’s parents qualify, they can take advantage if they can afford to.

Another smart thing the poster can do is encourage their parents to hold off on claiming Social Security for as long as possible. If they’re in good health, it could pay to wait until age 70 for them to file, as that will result in the largest monthly benefit they’re eligible for.

A financial advisor can help

The fact that this poster’s parents have no retirement savings is an indication that they may be in need of money-related guidance. So one final thing the poster can do is set them up with a qualified financial advisor.

A financial advisor can review their situation and offer guidance on how to salvage their retirement. They can also take over managing whatever portfolio the poster sets up so the parents’ assets are being looked after.

With any luck, meeting with a financial advisor will also help the parents realize that it’s okay to accept help from their child — even if they’d rather that things be the other way around.