Feb 12, 2026
While recent reports have highlighted a rise in parents financially supporting their adult children, another, less discussed trend is the number of adult children supporting their aging parents.
According to a 2025 LendingTree report, nearly half of Americans financially support their parents now or expect to do so in the future (1). This raises questions about how adult children can help their parents prepare for their retirement on their own, without jeopardizing their children's financial future.
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Imagine Jacob, a 23-year-old software developer who is concerned about his mother's lack of retirement savings. He's making around $100,000 a year and maxing out his own 401(k) and IRA contributions, but his 58-year-old mother has no retirement savings at all. With an annual salary of just $28,000, Jacob isn't sure she can save at all. He also isn’t sure how to help
The consequences of not being prepared for retirement
According to the Federal Reserve’s Survey of Consumer Finances, just 57% of households headed by someone ages 55 to 64 had money in a retirement account in 2022, the most recent data available. While that figure is slightly higher than it was during the pandemic, it remains one of the lowest participation rates the Fed has recorded since the mid-1990s (2).
That lack of savings carries real consequences. Data from the U.S. Census Bureau shows that between 6 and 8 million adults ages 65 and older were living in poverty in 2022. Poverty rates rise sharply among people over 80, women, people of color, and those with chronic health conditions. Medical expenses, housing costs and limited access to employer-sponsored retirement plans all contribute to the problem (3).
For adult children like Jacob mentioned in the scenario above, these challenges create a double bind. On one hand, children want to help their aging parents avoid financial hardship. On the other hand, stepping in too aggressively can derail their own retirement plans.
In most states, adult children are not legally responsible for their parents’ debts or day-to-day living expenses, but a handful of states have so-called “filial responsibility” laws on the books. Still, these are rarely enforced and apply only in extreme cases involving unpaid nursing home care (4).
But there can be emotional pressure. Most of us don't want our parents to live in poverty or to struggle financially.
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How to help older family members prepare for retirement
Financial planners often stress the same rule flight attendants do: put on your own oxygen mask first. If helping a parent means draining your retirement accounts or taking on debt, it may create more problems than it solves.
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That said, there are several meaningful ways to help without overextending yourself:
Start with a full retirement savings inventory
Before assuming your parent has "nothing" in retirement, help them review their finances. Some workers may have old 401(k)s, forgotten IRAs, or even small pensions from past employers. A paid-off or low-balance home can also help fund retirement through downsizing or sharing housing costs with someone else. Even forgotten coin collections or valuable antiques may help improve their financial picture.
Calculate how much they'll get from Social Security
Social Security is the core of retirement income for many retirees. Create an account at the Social Security Administration’s website so your parent can see their estimated benefit and how it changes depending on when they claim. Working longer and delaying benefits may give them time to save — and lead to higher monthly Social Security checks.
Notably, widows, widowers, and some divorced individuals may also qualify for benefits based on a spouse's or former spouse’s work record, and the payout may be higher than their own. This is especially true for women who spend more time caring for children and the home (5).
Maximize catch-up contributions
Adults 50 and older can make higher “catch-up” contributions to retirement accounts. For someone still working, even modest contributions can help boost future income. In 2026, those over 50 can save an additional $1,100 in their IRA (for a total of $8,600 total) and an additional $8,000 in their 401(k) or 401(b) for a total of $32,000 annually (6).
While these contributions can't replace decades of savings, they can make a meaningful difference in retirement income, especially if the parent waits to retire in their late sixties or early seventies.
Be realistic about timelines and outcomes
At this stage, the goal may not be a fully-funded retirement, but mitigating risks. That might mean delaying retirement, working part-time longer or budgeting around a fixed income supplemented by Social Security.
Finally, it's important to realize you can’t help someone who doesn’t want help. Offering support, information and encouragement is admirable, but it only works if your parent is willing to accept assistance. Helping them get started is valuable. Trying to rescue them at the expense of your own future isn’t.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Lending Tree (1); Federal Reserve (2); U.S. Census Bureau (3); National Conference of State Legislatures (4); Social Security Administration (5); IRS (6).
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
