My parents didn’t plan for retirement, but I’ve got millions: what’s the best way to help them?

Plenty of Americans retire comfortably after decades of disciplined saving. Others reach their 60s with almost nothing set aside, forced to lean heavily on Social Security checks to cover basic expenses. That gap between the two realities creates genuine financial hardship for millions of families.

One poster on Reddit describes exactly this scenario. Their parents, now in their early 60s and still working, are beginning to slow down and think seriously about retirement. The problem: they have roughly $200,000 saved, which sounds substantial until you consider that it may need to stretch across 20 or more years.

Canva | ajr_images from Getty Images and theboone from Getty Images Signature Because the poster has significant wealth, they want to help their parents retire with dignity and some enjoyment. The question is how to structure that support wisely. Here are six strategies worth considering.

1. Gift Money Strategically or Build an Investment Portfolio Direct cash gifts are the simplest option if you have funds to spare. In 2026, you can give up to $19,000 per recipient annually without triggering gift tax reporting requirements.

Married couples can combine their exclusions to gift $38,000 per recipient. Amounts beyond that annual limit reduce your lifetime estate and gift tax exemption, which stands at $15 million per individual in 2026 following the passage of the One Big Beautiful Bill. Rather than handing over cash for immediate spending, consider funding an investment portfolio tailored to your parents' risk tolerance and time horizon.

If they plan to work a few more years, that money can grow in a diversified mix of stocks and bonds. By retirement, the portfolio can generate income through dividends, interest, and strategic withdrawals. This approach also gives them firsthand experience with modern investing, which may prove valuable as they manage their own $200,000.

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Don't waste another minute; learn more here. 2. Cover Specific Expenses and Delay Social Security Claiming A lump-sum gift is not the only option.

Targeted financial help as needs arise can be just as effective and far less disruptive to your parents' sense of independence. You might pay the mortgage during a tight month, cover an unexpected car repair, or handle a medical bill. For discretionary spending, fund a special vacation or pick up the tab for dinners and entertainment you enjoy together.

Story Continues One particularly powerful strategy: subsidize their living expenses so they can delay claiming Social Security until age 70. Each year they wait past full retirement age (67 for those born in 1960 or later) increases their monthly benefit by 8%. Delaying from 67 to 70 locks in a permanent 24% boost.

Cover their essential costs during their mid-60s, and you effectively purchase a guaranteed, inflation-adjusted income increase for life. The math often favors this approach over gifting a comparable lump sum. 3.

Protect Existing Savings From Fraud Before adding new money, safeguard what your parents already have. Financial scams targeting older Americans continue to surge at an alarming pace. According to the FBI's 2025 Internet Crime Complaint Center (IC3) Annual Report, Americans aged 60 and older reported losses of $7.

7 billion in 2025, up 59% from the prior year, across more than 201,000 complaints. Investment scams inflicted the heaviest toll, accounting for more than $3.5 billion of those losses on their own.

A simple, zero-cost step: help your parents complete Trusted Contact Forms at every bank and brokerage where they hold accounts. These forms allow institutions to pause suspicious transactions and alert a designated family member without removing your parents' control over their own money. Pair that with establishing a durable Power of Attorney while they remain in good health.

If cognitive decline or serious illness strikes later, you can step in to manage bills and accounts seamlessly, without a court battle. 4. Tap Into Unclaimed Government Benefits Billions of dollars in assistance go unclaimed every year simply because people do not know the programs exist.

Tools like the National Council on Aging's BenefitsCheckUp site, a free and confidential service, can identify property tax relief, utility subsidies, prescription drug assistance, and nutrition programs your parents may qualify for. Freeing up even a few hundred dollars a month lets them direct more of their own savings toward growth. If your parents are still earning income and meet certain thresholds, they may soon benefit from the federal Saver's Match program.

Starting with the 2027 tax year, this initiative will deposit up to $1,000 per year directly into qualifying retirement accounts for lower and moderate-income workers who cont