Everyone makes financial mistakes, and parents are no exception. Some mistakes can be fixed, while others must be managed as best as possible. But what happens if your parents have no retirement savings or financial plan in place? 

Retirement planning is more important than ever, yet many people reach retirement age with little or no savings. In 2025, the UK state pension stands at £221.20 per week, which equates to around £11,500 per year—barely enough for comfortable living, let alone additional healthcare costs or luxuries. While some people assume they can rely on government support, the reality is that the state pension alone is often not enough to sustain a good quality of life.

Many people avoid saving for retirement due to:

• Believing they won’t live long enough to enjoy the savings.
• Struggling with high living costs that prevent them from saving.
• Assuming they can rely on family for financial support later in life. 

However, without proper planning, retirement can become financially difficult, putting pressure not only on the individual but also on their children. If your parents are nearing retirement with no savings, what can you do? How can you help them without putting your own financial security at risk?

Read on as we explore what to do if your parents have no retirement savings and actionable steps to take.

 

Step 1: Have a Real Conversation About Their Retirement Plans

Before assuming the worst, have an honest and open discussion with your parents about their retirement plans. Many people avoid talking about money, even with family, but it’s important to understand exactly where they stand.

How to Start the Conversation Without Causing Tension

• Ask about their retirement goals – Do they want to travel, downsize, or keep working part-time?
• Talk about financial security – Do they have any pensions, savings, or investments?
• Encourage open dialogue – Let them know you’re asking out of concern, not judgment.
• Offer to help them explore their options – It may not be too late to improve their financial outlook.

Many parents feel ashamed or embarrassed about their lack of savings. Instead of making them feel bad, focus on solutions and reassurance.

Step 2: Don’t Rely on the State Pension Alone 

If your parents are planning to rely solely on the UK state pension, they may face financial struggles. While the state pension provides some income, it is often not enough for a comfortable retirement—especially with the rising cost of living in 2025.

What Are Their Options? 

• Delaying retirement – Working a few more years can increase their pension pot.
• Checking for unclaimed pensions – Your parents may have lost track of old workplace pensions.
• Seeing if they qualify for pension credits – Some retirees can receive extra financial help.
• Exploring downsizing – Selling a larger home and moving to a smaller property could free up funds.

Encourage them to review all potential income sources so they aren’t fully dependent on state support and don't aim to rely on the state pension.

Step 3: Help Your Parents Create a Retirement Plan

If they have no financial plan, now is the time to build one. Even if they are late in starting, having a strategy is better than having nothing at all.

Questions to Consider When Creating a Retirement Plan

Before setting up a plan, sit down with your parents and discuss the following:

• How much do they currently have in savings, if anything?
• Do they own any assets that could be sold or rented for income?
• Do they qualify for any pensions or financial assistance?
• Are they able to continue working, even part-time?
• What are their essential living costs, and can they reduce them?
• Do they have debts that need paying off before retirement?

Once you have this information, help them set realistic financial goals. Encourage them to meet with a financial advisor, who can guide them on making the best use of their resources.

Step 4: Encourage Smart Spending and Budgeting Habits

If your parents are living on a tight budget, maximising every pound is key. Even small changes can make a significant difference in how far their money stretches.

Simple Ways to Cut Everyday Costs

• Use cashback and discount apps to save on groceries and shopping.
• Compare utility providers to get the best deals on energy and broadband.
• Take advantage of senior discounts available for transport, leisure, and shopping.
• Encourage meal planning to reduce food waste and unnecessary spending.

Making small but smart financial choices can help their money last longer.

It’s easy to save more money at the supermarket and online shopping nowadays.  Your parents can even turn their receipts into cash if they have smartphones!  If not, you can do it on your smartphone to help generate extra money.  Check out my list of apps that turn receipts into cash and also this list of cashback sites to maximise your free cash back and savings.

It’s also about maximising the cash you and your parents have to ensure you get the most out of it.  Check out my massive money-saving tips section and find some great deals on my voucher codes and free money pages!

Step 5: Explore Additional Income Options for Retirement

Many retirees supplement their pension by earning extra income. Even if full-time work is not an option, part-time jobs, freelancing, or passive income could help.

The reality is that if your parents have no retirement savings then they may need to continue working for longer or find ways to make extra money to supplement the state pension when they do retire.

Ways to Earn Extra Income After Retirement

• Part-time work – Flexible jobs such as tutoring, consulting, or customer service.
• Renting out a spare room – Earn extra income via lodgers or short-term rentals.
• Starting a small business – Selling crafts, offering handyman services, or freelance work.
• Dividend-paying investments – Stocks that provide regular income.

With more remote and flexible job opportunities nowadays, it’s easier than ever for retirees to earn extra money from home.

If they need some inspiration then I share loads of ways to make extra cash from home and online right here on this website.  To start, here are 60 ways to make money at home that I’ve tried and tested.  Follow these steps to make £1000 in one month at home.  And, if they’re ever short on time, try these methods for how to make money in one hour.

Step 6: Consider Their Healthcare and Future Care Needs

Healthcare costs can be one of the biggest expenses in retirement. It’s crucial to plan for potential medical bills, long-term care, or assisted living. 

Key Considerations for Long-Term Care Planning

• Do they have health insurance or long-term care coverage?
• Would they consider downsizing to afford better healthcare?
• Are there affordable home care options available if needed?
• Should they set up a living will or power of attorney for future decisions?

Early planning ensures they receive the best care possible without burdening family members.

Final Thoughts: Helping Your Parents Without Sacrificing Your Own Future

It’s natural to want to help your parents financially, but be cautious about risking your own savings or retirement. While offering guidance, resources, and emotional support is essential, avoid making financial commitments that could jeopardise your own future stability.

Instead, focus on helping them make smarter financial choices, explore ways to increase their income, and plan for the years ahead.

Retirement planning doesn’t have to be overwhelming. By taking small steps now, you can help ensure your parents have a financially secure and comfortable retirement.

 

Next, why not read my article 5 ways to supplement your retirement income for more helpful tips?