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 2025 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?

For many caregivers, the question of what to do with elderly parents that have no money affects their daily lives. 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. Fortunately, programs at the federal, state, and local levels, as well as nonprofit organizations and other sources, can provide help for low-income seniors.

Familiar government programs for seniors include Medicare, the health insurance program designed for those age 65 and over, and Medicaid, the joint federal-state health coverage program for individuals and families who are considered low income. 

Roughly 55 million older Americans earn Social Security retirement benefits, while millions more collect Supplemental Security Income (SSI), intended for those with limited resources who are blind, age 65 or older, or have a qualifying disability.

Family members are another source of support for seniors. Assisted living for seniors with no money, for example, might be possible through the help of children or other family members.

Family members might 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 supports and services.

Housing is generally one of the most significant costs for seniors, and low-income seniors may struggle to find living situations that provide the level of care they need. Every state has programs that can help low-income seniors find housing, pay for food, and access other services. 

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.

Twenty-nine 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 a comfortable life and pay for health care and other needs. 

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

Where do the elderly live when they have no money? That's only one question to ask if you are the caregiver for a senior or face financial difficulties as an older adult. Medicare covers some costs but not room and board for those in assisted living, nursing homes, or memory care facilities. 

Other programs, such as Medicaid, may offer more robust assistance. Locating financial resources and other support can be a challenge. Caring.com's Financial & Legal Resources guide can be a good first step. 

• Addressing the nation's retirement crisis: The 80%. (2024). National Council on Aging
• Desilver, Drew. (2025) What the data says about Social Security. Pew Research Center
• Elder Index measure of economic security. (2022). National Council on Aging
• Elder Index: Measuring the income older adults need to live independently. (2025). Gerontology Institute at UMass Boston
• Financial care for older adults. (2025). Bank of America
• Luftman, Doug. (n.d.). What states have filial responsibility? Trust & Will
• Palmer, Barclay. (2024). Three-legged stool for retirement: Meaning, overview, and history. Investopedia
• Power of attorney or joint accounts: What is the best way to assist a loved one with finances? (n.d.). McAndrews Law
• Supplemental Security Income (SSI) overview. (2024). Social Security Administration
• Tavares, Jane, et al. (2024). Increases in older americans' income and household assets still cannot support most during financial hardship. National Council on Aging and LeadingAge LTSS Center@UMass Boston