Parents unprepared for retirement

[AshleyJordan]

OK, so I don't want to get into too much backstory (and really, IDK quite what happened,) but my parents have much, much less saved for retirement than I had been led to believe. They plan to retire in about 10 years, and at this point to live off of Social Security. . . which definitely wouldn't be enough for them to get by on. I definitely will not be in a position to help them. What do people do in situations like this?

[wordsmith]

My parents will never be able to retire, actually. They run a mom and pop business, and their meager retirement $$$ had to be used to handle medical expenses that the level of insurance that is affordable for the self-employed won't cover. Right now, the plan is for them to continue to work until that can't happen anymore.

I would be open to having them live with me at some point in the future if need be. But I get along with them well, and the idea of a multigenerational household has always appealed to me. I was raised next door to my grandmother, and it would have been cool to actually have her under our roof.

[AshleyJordan]

In your parents' situation, I think that really sounds great for all parties involved. When that's not an option, what can you do, though? I'm thinking maybe selling the house and trying to get into some sort of low/middle-income senior housing, when that time comes? Or maybe they'll realize that they have to continue working, even if it's part-time?

[wordsmith]

The elderly clients I used to work with were pretty dependent upon low-income housing/Section 8, to be honest.

[AshleyJordan]

Who knows. . . maybe the house will be paid off by then? It was paid off, and then they borrowed against it.

Re. lower-income housing. . . I know a bit about that because I worked on it from the development/planning end (actually getting the $ together to construct it,) but never from a client svcs end. I know there are steep requirements and waiting lists. Would there be any way to get them on a waiting list with the understanding that even though they don't qualify now, they will qualify by the time a slot opens up? I'm sure the answer is no, I'm just trying to think strategically.

[Krishna]

Who knows. . . maybe the house will be paid off by then? It was paid off, and then they borrowed against it.

Re. lower-income housing. . . I know a bit about that because I worked on it from the development/planning end (actually getting the $ together to construct it,) but never from a client svcs end. I know there are steep requirements and waiting lists. Would there be any way to get them on a waiting list with the understanding that even though they don't qualify now, they will qualify by the time a slot opens up? I'm sure the answer is no, I'm just trying to think strategically.

Check with an economic support specialist/benefit specialist in your area or your parents' area. They are the ones who would have the most info on this.

[AshleyJordan]

Yeah, I'm already planning to contact the various retirement communities, etc. Talking to Sr. Svcs. would be a great idea as well, Krishna. I'm still a little floored (not totally floored, considering the economy and some of their personal choices, but surprised,) at the news and trying to digest it.

[Krishna]

Yeah, I know how you feel. My parents are probably in a similar situation. They had me when they were fairly young, and instead of socking as much into their retirement funds as possible, they were paying to raise me. Then they went and paid for my school (which I appreciate), but now they are trying to play catch-up with their contributions. I'm planning to do the opposite. Now that I have a "real" job, I'm planning to sock as much into 403b, Roths, etc as I can, while I'm not supporting kids.