Personal Finance

My Boomer Parents Have Nothing For Retirement After Losing It All 5 Years Ago.

Christy Bieber

Published: March 10, 2025 6:01 am

Many Baby Boomers have far too little money saved for retirement. In fact, Fidelity Investments revealed that the average 401(K) balance among Baby Boomers is just $249,300. Trying to live on that amount of money can be a challenge, even with  Social Security coming in, as $249K would provide only around $9,213 in annual income at a safe 3.7% withdrawal rate. 

Some Baby Boomers, of course, have even less than the average. One Reddit user, for example, recently explained that he discovered his retired parents had run out of money five years ago and only told him the truth when they were on the brink of homelessness.

This has put the Redditor in a difficult position and raises important questions for anyone else facing the same situation about what to do to help struggling parents. 

Here are some tips to help handle this tough issue. 

How to help retired parents with no money

If your retired parents don’t have the money to fund their living expenses, it’s really important that you do not allow their situation to derail your own finances. Otherwise, you could end up placing the same burden on your own kids that your parents are placing on you. 

Instead of giving up your own future security, you have a few options for trying to deal with the situation including:

• Helping parents to tap into home equity: While many Boomers don’t have a lot of money saved, they may have plenty of home equity. They may be able to sell their home and use the proceeds to become more financially stable. This is one of the things the Redditor helped his parents to do. 
• Assisting parents in adjusting spending: Sometimes, people have a hard time realizing they have to spend less on a fixed income. It can be helpful to sit down with broke parents and work with them on a budget that allows them to live off their Social Security benefits and whatever savings they have. 
• Exploring government benefits: Lower-income Boomers may be able to qualify for Supplemental Security Income (SSI) or other government benefits to supplement their Social Security retirement income. 

Aside from taking these steps, those who want to help aging broke parents can do so if they can find room in their budget for it.

For example, the Reddit user is offering some help to his parents, including purchasing and paying for a small home for them to live in. However, it’s important to put strict limits on this to avoid getting into financial trouble.

A financial advisor can provide help and support

Often, the best option when dealing with Boomer parents who are broke is to talk with a financial advisor. An advisor can offer assistance to retirees with too little money by working with them to come up with a plan to stay as stable as possible for the remainder of retirement. An advisor can also offer assistance to the children of broke parents in deciding how much financial support is appropriate and feasible. 

Getting professional advice can also take some of the emotions out of these tough situations, so all parties are guided by facts and develop a logical financial plan to move forward rather than making decisions based on emotions that later lead to regrets.