Retirement Retired Life

78-Year-Old Nearly Broke with Limited Resources - Experts Weigh In

Experts weigh in on this retiree's situation.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated May 12, 2026

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When thinking of retirement, most future retirees hope to have some savings to lean on in their golden years. But, in reality, many of America's seniors rely heavily on Social Security after leaving the working world. For those with a limited Social Security income and little else saved, it can be difficult to get by, even if you're making all of the smart money moves for retirees.

In this piece, we explore one retiree's tight financial situation, and experts outline some options on how to move forward.

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What's the situation?

One concerned child turned to Reddit for advice on how to help their mom navigate a precarious financial situation in retirement. Redditor sarty explains that, until recently, their mother's financial situation was more stable because she lived with her own mother, who received her own retirement income.

Recently, the Redditor's grandmother passed away at the ripe old age of 103. In addition to the emotional blow, her passing means that the Redditor's mother is only receiving $600 per month in Social Security income, which isn't enough to make ends meet, even with a paid-off house.

As a stopgap, the Redditor and their sister have been giving the mother $500 each per month. But the Redditor can no longer afford to keep sending over $500 every month. The 78-year-old retiree has around $14,000 in savings, originally a gift from her children following an inheritance from their father.

The Redditor would like their mother to apply for Medicaid, but the retiree's $14,000 in savings seems to be a roadblock. According to the post, the retiree has already cut spending to the bone, without even running heat or air regularly.

We asked financial experts to weigh in on this situation. Here's what they had to say.

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Have the mother pay the daughters back

At first glance, this might seem to put the mother in an even more difficult financial position. But by getting the $14,000 out of her hands, she may qualify for Medicaid, which could open the door to significant resources.

"If it can be documented that the kids have given mom more than $14,000 over the years, mom may be allowed to simply pay that money back to the daughters without it being seen as a gift by the mom, bringing her assets under $2,000, and then apply for Medicaid," says Evan H. Farr, CELA, CAP, Elder Law Attorney and retirement planner at Farr Law Firm, P.C.

Get in touch with an elder law attorney

It's important to make sure that everything is done on the up and up. "These strategies should be conducted under the guidance of an experienced Elder law attorney to make sure they are done properly," says Farr.

If possible, it might be a good idea to consult with an elder law attorney to confirm everything is done right. If it's not, Medicaid might not work out.

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Consider moving in together as a family

While it's not always possible, having the mother move into one of the children's homes could be a realistic solution.

"One of the most immediate and realistic solutions would be shared living arrangements," says Charles Hoff, a financial literacy counselor at DFCU Financial. "This could mean one daughter moving in with mom, or potentially all of them living together and sharing expenses."

Hoff continues, "Living alone on limited income is a privilege, not always a realistic option, and often requires strong financial footing built over time."

Pooling resources into one house instead of three could alleviate a lot of financial pressure from the family, especially if the mother is able to sell her house to provide more of a nest egg for her other expenses.

Consider a roommate

If living together as a family isn't a good option, having the retiree find a roommate might work out better. "Bringing in a roommate is one option," says Hoff, "If she has lived in the home for many years, depending on the state, property tax considerations may support staying in place."

The income from a roommate could help to offset some of the mother's living expenses.

Consider a reverse mortgage

"A reverse mortgage could also be an option, though it should be evaluated carefully," says Hoff.

With a paid-off house, it's possible that the 78-year-old could tap into an income stream through a reverse mortgage. Although it might be a financial lifeline, it likely means the daughters won't inherit the house.

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Apply for other support programs

If the retiree's income is so limited that she might qualify for Medicaid, it's important to explore other assistance programs. For starters, she should consider applying for SNAP, which might be able to help her cover grocery costs.

Beyond SNAP, other support options to consider include applying for Meals on Wheels, seeking out food banks,

Sometimes it can get confusing to know what you qualify for. If the family needs help figuring out what to apply for, they might consider connecting with a nearby Aging and Disability Resource Center (ADRC).

Bottom line

It's tough to scrape by in any phase of life. But it's especially painful to have limited resources in old age. Unfortunately, it's not uncommon for seniors to find themselves financially unprepared when they're ready to retire.

As you build a retirement plan, focus on what you can control, such as increasing your savings now to make your situation easier later.

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