In an episode of “The Mel Robbins Podcast,” personal finance educator Vivian Tu, known online as Your Rich BFF, gave listeners an assignment that could land at a lot of parents’ kitchen tables.
“If your parents are behind on retirement, it is better to know now so that you can help them set up contributions that are going to then support them so that you can help them potentially think about downsizing their home,” Tu said.
Her advice was aimed at adult children. For readers on the other side of that conversation, the more useful question is what a parent who is behind can still do. The answer is better than many people over 50 assume, and Tu named the first tool herself.
1. Claim the extra room the tax code gives you
“After you turn 50, you have actual access to something that the rest of us don’t, called catch-up contributions,” Tu said on the episode.
The numbers are substantial. For 2026, workers can put up to $24,500 into a 401(k), 403(b) or governmental 457 plan, plus an $8,000 catch-up contribution at age 50 or older, according to the IRS.
Workers ages 60 through 63 get a larger catch-up of $11,250 instead. That means a 61-year-old can defer as much as $35,750 in 2026. IRAs allow $7,500, or $8,600 at 50 or older.
One wrinkle for higher earners: Starting in 2026, catch-up contributions must go into a Roth account if your prior-year wages from the employer topped $150,000, under a SECURE 2.0 Act rule the IRS has finalized. You pay tax on that money up front rather than later, so check how your plan handles it.
If you are deciding which account to fill first, the best order for your retirement dollars depends on your match, your tax bracket and your fees.
2. Get your Social Security estimate before anyone picks a date
For many people who are behind, the claiming decision is worth more than a few years of extra savings. If your full retirement age is 67, claiming at 62 permanently cuts your benefit by 30%, the Social Security Administration says. Waiting past full retirement age raises it by 8% a year until 70.
Log in to your my Social Security account at SSA.gov and look at the estimates for 62, 67 and 70 side by side. If married, do the same for your spouse, since the higher earner’s claiming age also shapes the survivor benefit.
A conversation with your kids goes better with these numbers in hand than with a guess. If the tradeoffs feel complicated, you can compare financial advisors who handle claiming strategy.
3. Run the downsizing math yourself
Tu raised downsizing as part of the plan, and for many homeowners, the house is the biggest asset they have. A sale can free up cash and cut taxes, insurance and upkeep. Agent commissions, closing costs, moving expenses and any repairs needed to sell all come out of the proceeds, and a smaller home in a pricier area may not save as much as it seems.
Most sellers of a primary home can exclude up to $250,000 of profit from federal income tax, or $500,000 for married couples filing jointly, if they meet the IRS ownership and use rules. Get a realistic sale estimate, subtract every cost and compare the result with what you would spend on the next place.
The obstacles to buying a home in retirement are worth knowing before you list.
4. Decide what help you would accept, and put it in writing
Adult children who learn a parent is behind often want to help. Decide ahead of time what you would welcome, whether that is help researching options, a contribution toward a specific expense or nothing financial at all.
If money changes hands, write down whether it is a gift or a loan and keep accounts separate. Clear terms protect the relationship and your kids’ retirement savings.
5. Get a plan someone else could follow
Being behind is easier to fix with a written plan that shows how much to save, when to claim and what to do with the house. If you have $100,000 in savings and you are already considering professional help, SmartAsset matches people with up to three fiduciary financial advisors, who are legally required to put your interests first.
The matching service is free and comes with no obligation. Its questionnaire takes about 10 minutes and asks for a phone number near the end, and you decide whether and when to respond to any advisor.
SmartAsset connects you with advisors; it does not give advice itself. Money Talks News may receive a referral fee if you use it. Find a fiduciary advisor.
More retirement moves for people over 50 who are behind can help fill in the rest. The conversation Tu wants adult children to start is easier on everyone if the parent arrives with numbers instead of worry.
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