How do I help my mom plan for retirement?

Question

My mom is turning 60 this year and like so many people in her age group has no savings and no retirement plan at all. She is also a diabetic. She plans on working as long as possible, but I know that especially with the state of this economy, she needs more of a cushion. We have recently sold my grandma's old house, and she will be getting money from it. I know that the money we get from the house will be spent long before her retirement starts.

While I do plan on helping her and being there for her as much as possible, I also have a family to provide for. I can't bankrupt my family. How can I encourage her to save the money from the sale of the house without sounding selfish? I don't care about getting any of that money for myself. I care about the well-being of my mother and of my family. 

I want to have a heart-to-heart with her soon about the future. I don't want to sound uncaring, but I have lots of concerns.

M W · Accepted Answer

If, at 60, you Mom hasn't seen the need to save up some money for retirement, there's not much chance of getting her to do it now.

Your only hope is to get your hands on the money from the sale of Granny's house and putting it into an account where Mom can't get to it without your consent.

If Mom loses her job before she plans on retirement, she will be eligible for unemployment which will be about 1/2 of what she is earning at her job.  She might qualify for food stamps, that about $100 a month.  She won't be eligible for Medicare until she's 65.

If you have siblings, each of you need to put at least $100 a month away in an account for her for when she retires, which is in 5 or 6 years.  

I faced the same issue and had to buy a duplex so I could live in one half and my aging parents in the other half.  They sold their big old house which didn't generate a ton of money, but it was enough to pay monthly rent to me for the duration of their lives.  It worked for me, maybe it's something you or your one of your brothers or sisters can consider.

? · Answer

You have to worry about your own retirement.
Things will be much, much worse than now when you are older.
Social Security may not be around, and who knows what will happen to medicare.

Edited after some thought:
She has diabetes?
She might get 10K or even 50K out of that house?
Let her buy herself a nice vacation or a new car.
If she never had a 401K that means that she worked hard jobs all her life.
She'll know to save some.  She'll do her best.
Diabetes is a condition that may cut her life short.  Try to stay sweet.

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How do I help my mom plan for retirement?

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