When Aging Parents Need Financial Help: A Family Guide

By Capital Management Group on May 20, 2026

When you’re growing up, your parents are responsible for caring for you and helping you build a stable foundation for adulthood. But as you age, so do your parents, and the dynamic of who is helping whom can begin to shift. Over time, many adult children find themselves stepping into a caregiving role, supporting their parents not only with health needs, but financially as well.

By 2050, the number of Americans age 65 and older is projected to reach 82 million—a 42% increase from 58 million in 2022.[1] As this population grows, many older adults are likely to face rising costs for healthcare, long-term care, housing, and everyday expenses like groceries. Unfortunately, many adults don’t account for this when planning for their retirement and can end up with a shortfall when their combined retirement savings and Social Security benefits don’t cover all of their expenses.

Against this backdrop, it’s becoming more common for aging adults to require additional financial support to make ends meet, which in some instances requires them to ask their children. That support can come at a cost, placing both emotional and financial strain on those who may already be caring for children of their own.

These financial needs often arise alongside caregiving responsibilities, adding another layer of complexity. The combined demands on time, finances, and emotional energy can make these situations difficult to navigate. For many families, these conversations are also uncomfortable. Parents may feel uneasy relying on their children, while children may feel uncertain about what they can realistically provide.

This guide offers practical ways for families to approach these conversations and make thoughtful, informed decisions together.

Why Financial Shortfalls Happen

Planning for retirement has always been complex, requiring individuals to estimate how much they will need to support their lifestyle after they stop working. However, longevity is uncertain, and so are financial factors like market performance and inflation. Personal events—like health challenges or job loss—can further complicate even well-thought-out plans. As a result, many adults who believed they were adequately prepared may still face gaps in retirement.

Below are several common reasons why retirees—or those approaching retirement—may experience a shortfall:

1. Insufficient savings

In previous decades, employer-sponsored pension plans were more common, particularly in the private sector. These plans typically provided a steady income in retirement based on salary and years of service.

Today, many employers offer defined contribution plans, such as 401(k)s and 403(b)s, which place more responsibility on individuals to save and invest for their own retirement. While these plans offer flexibility, they also require consistent contributions and long-term planning.

Financial guidelines often recommend reaching savings benchmarks based on your salary, such as accumulating savings equal to three times your annual income by age 40.[2] However, for many Americans who are juggling student debt, car loans, rising rent costs and home prices, that doesn’t leave them with much money to set aside for retirement. So, when they approach their 60s and want to start winding down, there is not enough money to do so comfortably without additional support.

Average Retirement Savings by Age

Source: Federal Reserve Survey of Consumer Finances, 1989–2022. As of 2022. www.federalreserve.gov/econres/scfindex.htm

• Claiming Social Security Too Early

For individuals born in 1960 or later, full retirement age (FRA) is 67. Claiming Social Security benefits before that age—earliest at 62—results in a permanent reduction in monthly payments, which can be as much as 30%.

While early claiming may make sense in certain situations, it can reduce lifetime income, particularly for those who live longer or rely heavily on Social Security. Conversely, delaying benefits beyond full retirement age can increase payments by approximately 8% per year until age 70.

Because this decision has long-term implications and is generally difficult to reverse, claiming benefits earlier than planned can contribute to income gaps later in retirement.

• Rising Healthcare Costs

Healthcare is one of the more significant and unpredictable expenses in retirement, and costs have historically risen faster than general inflation. Even with Medicare, out-of-pocket expenses, such as premiums, deductibles, and long-term care, can add up.

Unexpected medical events or the need for extended care, such as assisted living or nursing facilities, can place considerable financial strain on retirees. In some cases, individuals may need to draw down their savings more quickly than anticipated to cover these costs.

• Supporting Others

In today’s financial landscape, parents are increasingly helping financially support their adult children. According to a Wells Fargo study, a significant percentage of parents of Gen Z adults provide some form of financial assistance, including housing or direct financial support.[3]

While often well-intentioned, this support can reduce the amount individuals are able to save for their own retirement. Over time, these trade-offs may impact long-term financial security and contribute to retirement shortfalls.

Recognizing the Signs Your Parents May Need Help

If your parents are experiencing financial hardship due to a lack of retirement savings, they may not explicitly tell you. Not having enough money to cover expenses can be a source of embarrassment for many people, so as a child, you may only notice subtle signs that they need financial help. Below are some indicators that your parents may need additional support with their finances:

• Missed bill payments or mounting debt
• Lifestyle changes (cutting essentials or selling assets)
• Increased reliance on credit cards
• Avoidance or secrecy around finances
• Health issues affecting financial decision-making

If you’ve noticed any of these shifts with your parents, now may be the time to initiate a conversation with them to discuss their financial situation.

Starting the Conversation

Conversations about money—especially with your parents—can be uncomfortable, but it’s important not to delay or avoid them. Having the discussion earlier can help prevent a situation where you are forced into “crisis mode,” trying to repair finances at a more difficult point.

Children should approach the conversation with empathy and curiosity, rather than making assumptions about why their parents are in their current position. Your parents may feel like they are losing independence or becoming a burden, so it’s important to be mindful of how the conversation is approached. Asking questions and inviting them to share more can help make the conversation collaborative rather than corrective.

Here are some helpful conversation starters:

• “I want to make sure I understand what’s important to you. How are you feeling about things financially right now?”
• “Do you feel like everything is set up the way you’d like it to be?”
• “If anything were to change, do you feel like you have a plan in place?”
• “Are things feeling harder to keep track of lately?”
• “Are there areas where costs have been higher than expected?”
• “Would it be helpful to simplify how bills are paid or organized?”
• “Are there any day-to-day tasks that feel more difficult than they used to?”
• “Would it be helpful to have a backup plan in place, just in case?”
• “Is there anything you’ve been concerned about that we haven’t talked through yet?”

These questions can help keep the conversation open and approachable, while also giving you a better understanding of what support they may need. If you have siblings, it’s important to include them in these conversations as well. You should also expect that this won’t be a one-time discussion, but rather an ongoing conversation. Over time, you may want to follow up with a more in-depth discussion where you review their full financial picture together.

Understanding Their Full Financial Picture

To understand where your parents stand financially—and whether support may be needed now or in the future—you first need a clear and complete picture of their finances. Start by having them walk you through their income sources, including retirement savings, Social Security, pensions, and any investment accounts.

From there, compare their income against their expenses. This should include both fixed and variable costs, as well as larger categories like healthcare and housing. You’ll also want to review their assets and liabilities to better understand their overall financial position.

Lastly, and perhaps most importantly, review their legal documents. Many families avoid conversations about estate plans and end-of-life wishes, but these discussions are an important part of financial planning. While you’re talking about their financial future, take the time to understand what plans are already in place and whether any updates may be needed.

This includes documents such as a will, power of attorney, and healthcare directives. Having these in place can help ensure their wishes are carried out and allow you to step in and make decisions if necessary.

Identifying Areas for Adjustment

Before turning to family for financial support, there may be opportunities for your parents to make adjustments that improve their financial situation. Even small changes can help reduce expenses or increase income, easing the pressure on their overall plan.

One of the first steps is to review spending. Encouraging your parents to take a closer look at their monthly expenses can help identify areas where costs may be reduced. This might include cutting back on discretionary spending, renegotiating bills such as cable or insurance, or eliminating services they no longer use.

Housing is often one of the largest expenses in retirement. Depending on their situation, your parents may want to consider downsizing to a more affordable home, relocating to a lower-cost area, or exploring options like renting out a portion of their home for additional income.

Healthcare costs can also be a significant burden. Reviewing Medicare coverage annually and exploring supplemental plans may help manage out-of-pocket expenses. In some cases, switching providers or using generic medications can also help reduce costs.

If your parents are open to it, generating additional income—either through part-time work, consulting, or turning a hobby into a source of income—can help bridge financial gaps. While not always feasible, even modest income can provide added flexibility.

Ultimately, the goal is to identify adjustments that align with your parents’ lifestyle and comfort level. Having these conversations early can help create more options and reduce the likelihood that financial support from children becomes the only solution.

Exploring Available Resources

Elderly individuals requiring additional financial support is not a new concept. Many seniors face this challenge, as living on a fixed income often limits their ability to absorb unexpected or rising expenses. The federal government offers a range of programs designed to provide support. Below are a few examples available at the federal level:

• Low Income Home Energy Assistance Program (LIHEAP) provides assistance to eligible individuals who need help paying for energy bills. In some cases, the program may also support weatherization or energy-related home repairs, depending on the state.
• U.S. Department of Agriculture (USDA) Section 504 Home Repair Program offers grants to low-income homeowners age 62 or older to address health and safety hazards or improve accessibility. The USDA also provides food and nutrition support through programs such as the Seniors Farmers Market Nutrition Program and the Commodity Supplemental Food Program.

If your parent is disabled, there may be additional resources available. The Social Security Administration provides benefits such as survivor benefits for a spouse, as well as Supplemental Security Income (SSI) for individuals who are 65 or older, blind, or disabled and meet certain income and asset requirements. The IRS also offers tax credits for older adults or those with disabilities that may help reduce their tax burden. For more information, visit the IRS website.

In addition to federal programs, many states and local communities offer resources for seniors that may help fill gaps. Eligibility and availability vary, but even enrolling in one program can provide meaningful support and help offset financial shortfalls.

Structuring Financial Support

If you are able to provide financial support to your parents, it’s important to create a plan for how you will help. Financial support can take different forms. You and your family can agree on a specific dollar amount that you can comfortably provide each month. In your own budget, you can treat it as a recurring expense. Establishing this upfront can help you stay consistent with your support without overextending yourself.

You can also support your parents by covering a specific recurring bill instead of giving them money directly. For example, you may choose to take on expenses such as rent or mortgage payments, utilities, or insurance premiums. This approach can help ensure that your contributions are going toward essential needs. You can also automate these payments to reduce the risk of anything being missed.

If you have siblings, it’s important to communicate and align on how support will be shared. Having clarity upfront can help avoid confusion or added strain over time.

What’s most important is setting clear boundaries around what you can afford. You should not put yourself in a position where you compromise your own financial stability to support your parents. Setting expectations around what you can and cannot take on can help prevent misunderstandings. It may also be helpful to revisit this plan over time, as both your financial situation and your parents’ needs can change. Doing so can help reduce the risk of financial strain, as well as feelings of resentment or burnout over time.

Protecting Your Own Financial Future

As mentioned above, it’s essential to establish boundaries around where you can support your parents and where you can’t. You want to avoid putting yourself in a position where you are neglecting your own financial future and potentially repeating the same cycle—where you may one day need support from your own children. If you are in a position to help, make sure you are still contributing adequately to your retirement savings and maintaining an emergency fund. Having your own financial safety net is essential, even as you support your family.

Another reason it’s important to understand your parents’ financial situation is to be aware of potential legal considerations. Some states have what are known as filial responsibility laws, which in certain cases may hold adult children financially responsible for a parent’s unpaid healthcare costs. While these laws are not commonly enforced, and their application varies by state and circumstance, they can allow healthcare providers or government entities to pursue reimbursement from adult children under specific conditions.

More than half of U.S. states have some form of filial responsibility statute, though many are outdated or rarely applied. Because enforcement and scope can differ significantly, it may be helpful to understand the rules in your state or consult a legal professional if you have concerns.

Overall, you should make sure you don’t overextend yourself financially. Just as you’ve emphasized the importance of planning with your parents, it’s equally important to apply that same level of care and discipline to your own financial future.

Conclusion

As markets and life remain unpredictable, even those who have planned carefully can experience financial shortfalls in retirement. When this happens, the dynamic between parents and children can shift in ways that feel unfamiliar and, at times, uncomfortable. Approaching these situations with empathy and respect can make a meaningful difference, helping families work through challenges together.

While these conversations are not always easy, avoiding them can make situations more difficult over time. Taking a thoughtful, proactive approach can help create clarity, reduce stress, and lead to more informed decisions for everyone involved.

A financial advisor can play an important role in guiding you through this process. They can help you evaluate your own financial plan, determine what level of support may be appropriate, and help ensure you stay on track toward your long-term goals. They can also serve as a neutral resource in family discussions and help identify strategies to support your parents in a sustainable way.

If you’re navigating a similar situation, consider reaching out to your advisor to discuss your options. If you don’t currently have one, our team is here to help you think through these decisions and build a plan that supports both your needs and your family’s.

[1] Fact Sheet: Aging in the United States – Population Reference Bureau. (2026, January 21). Population Reference Bureau. https://www.prb.org/resource/fact-sheet-aging-in-the-united-states/

[2] Equifax. (2024). How much money should I have saved by my 40s & 50s? Equifax. https://www.equifax.com/personal/education/life-stages/articles/-/learn/how-much-should-i-have-saved-by-middle-age/

[3] Nova, A. (2026, April 13). Many Gen Z adults still get financial help from their parents. CNBC. https://www.cnbc.com/2026/04/12/many-gen-z-adults-still-get-financial-help-from-their-parents.html