What Happens When Your Elderly Parent Runs Out of Money?

Elderly parents with no money can rely on government programs like social security or Medicaid. Depending on which state you or your senior loved ones reside in, there may be filial responsibility laws you must comply with.

A 2024 National Council on Aging study, in conjunction with the University of Massachusetts LeadingAge LTSS Center, shared some alarming statistics — about half of older Americans lack sufficient resources to weather a financial shock such as a health crisis or the loss of a partner or spouse. 

Caring's 2024 survey of seniors in the workforce indicated that one in three older adults work part- or full-time to make ends meet, while our Senior Mental Health Survey suggests that seniors are gravely troubled by the sense that they may not have enough saved for retirement, and may be  unable to afford medications. 

So, how can you help your aging parents if they fit this demographic and find themselves without enough financial resources to manage their lives?

Caregivers are often left wondering what happens to senior citizens when they run out of money. The traditional "three pillars" of retirement — Social Security benefits, a pension, and personal savings — may not apply to some seniors or may not provide enough income to meet all needs. Caregivers and seniors alike may worry about how to pay for a nursing home with no money, afford adequate health care, or even buy groceries. 

In reality, far too many seniors are coming up short. Caring's Seniors in the Workforce survey found that 51% of senior respondents didn't have enough money saved for retirement. Many seniors also don't live in more affordable states, like Mississippi, where they can potentially stretch their savings a little further.

Fortunately, programs at the federal, state, and local levels, as well as nonprofit organizations and other sources, can provide help for low-income seniors.

Some government aid explicitly helps seniors who have low incomes and/or limited resources. Consider confirming your loved one's eligibility for these programs, which can work alongside family support and other resources to cover essential needs.

• Medicare: Medicare benefits cover medical services, hospital stays, and prescriptions. Most seniors pay monthly premiums along with deductibles and copays for some services. 
• Medicaid: Medicaid covers medical services such as doctor visits and long-term care based on need. This program often pays for services Medicare won't cover and Medicare-related copays or coinsurance.
• Social Security: Social Security retirement benefits offer a monthly income based on work history and average earnings that the retiree can use for any purpose. Benefits start at age 62 for eligible retirees.
• Supplemental Security Income: SSI is a monthly benefit that recipients can use to pay for everyday expenses and medical care. Seniors must be at least 65, have a disability, and have limited income and resources to qualify.

Twenty-seven states have a type of law called a filial support law. These laws vary, but in general, they require adult children with resources available to pay for the costs of their aging parents when they are no longer able to do so. 

These laws may apply to seniors who "fall through the cracks" and have too much income to qualify for Medicaid but not enough to live comfortably, pay for health care, and afford other needs.

If you live in a state that has a filial support law, you may benefit from speaking with an experienced elder law attorney to find out what you are required to do to care for your senior parents.

It's normal to wonder if you are financially responsible for your elderly parents. In states with filial support laws, you might be, but this legal status isn't the norm. While you might not be legally responsible, you still may have the desire to help. Family members sometimes offer support for assisted living or memory care, for example, if their loved one doesn't have enough money to cover them. 

Families might also open their homes to senior relatives or provide caregiving support to allow seniors to remain in their residences, whether it's a home they've lived in for decades, an independent living situation, or some other residential option. Family members can also help seniors apply for programs that provide income or other supportive services.

Knowing what to do with elderly parents with no money to afford housing is a challenge. Low-income seniors may struggle to find an affordable living situation with the level of care they need. Fortunately, every state has programs that can help seniors with low incomes find housing, like subsidized apartments or housing vouchers. Because low income varies by state, eligibility differs between states and programs.

Since availability varies from state to state, it can be helpful to do some research to find out which services operate in your region. Most states have a system of Area Agencies on Aging that can be a good first stop when looking for support.

If you worry about what to do when an elderly parent runs out of money, the most important thing to remember is that help is available. Government programs can assist seniors with low income find housing and pay for essentials, including food and medical services. Check if your family can chip in, too, whether by helping your loved one apply for programs or by offering financial support.

Sometimes, locating financial resources and other support can be the biggest challenge. Caring.com's Financial and Legal Resources guide can provide a good first step for getting your loved one the help they need.

Costs. (n.d.). Medicare.gov | Housing options for senior citizens. (n.d.). New Jersey Division of Aging Services | How Medicaid works with Medicare. (2025). Medicare Interactive | Map Monday: States spell out when adult children have a duty to care for parents. (2025). National Conference of State Legislatures | Retirement benefits. (2025). Social Security Administration | Supplemental Security Income (SSI) overview. (2025). Social Security Administration | What to do if a nursing home is pushing for discharge but you don't agree. (2025). American Council on Aging