Megan called to say her parents earn about $100,000 a year but have no retirement savings. Her father, now in his 80s, still works full-time while her mother has never been employed.
She explained on “The Ramsey Show” that her parents, unable to cover retirement expenses, have suggested moving in with her family. Megan and her husband, raising two young children, worried about how to set boundaries without sacrificing their own financial stability.
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Megan told host Dave Ramsey and co-host George Kamel that she and her husband are debt-free aside from their mortgage and have built an emergency fund and college savings for their children. But her parents’ lack of preparation has created tension.
“They don’t know what they’re going to do for retirement,” she said. “They have no retirement savings and very little in a savings account.”
Ramsey responded that Megan should not feel obligated to bankroll their lifestyle. “I love you and I’m worried about you … but I’m not your plan,” he said. He urged her to have a direct talk with her parents, asking what happens if her father can no longer work or if income drops after one passes away.
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Boundaries Before Burdens
Ramsey explained that honoring parents is about respect, not financial dependence. He told Megan to clarify her role as a coach and supporter, but not as their source of money. He also emphasized the importance of using clear language: “No, Mom, you’re not moving in with us,” he said, stressing that boundaries protect both her household and her parents’ dignity.
Kamel added that Megan could walk her parents through practical steps such as creating a budget, reviewing their debts, and downsizing to a smaller home if needed.
“What sacrifices must be made for you guys to retire with dignity?” he asked, urging her to help them answer those questions rather than writing checks to cover years of mismanagement.
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The Silver Squatter Trend
Kamel broadened the conversation, pointing to a national issue. “This is an epidemic,” he said. “They’re calling them silver squatters — relying on the kids.” The phrase, he explained, captures the growing number of older parents who move in with adult children because they lack retirement savings.
Ramsey warned that the pattern pressures Generation X families, who often juggle raising kids and supporting parents at the same time. He said this “sandwich generation” risks becoming the next wave of underprepared retirees if they drain their own savings.
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