What should I do if my parents have no savings at all?

Hi, Im 3 yrs into the workforce. When started out im just like you in a similar situation, except that i have to pay my student loan. What i can advise is, build your emergency fund first. This shld include a 6 months to 1 year living expenses that you and your parents need, should you or yr parents be unable to work. After that you can top up their cpf, I assume just like my parents they hve not reached BRS, so interest rates would be higher. Given their age, i think this is good as CPF is literally risk free and you will not find btr interest rates elsewhere at literally 0 risk. On top of that, you may wish to give them allowance for them to save (since most elders feel safer with money in their bank accts) or u could choose to invest for them in a bond etf. If you have additional cash, can invest elsewhere for yrself. Most impt like what others mention, take note of your spendings, and cut down on the unnecessary, such as movies, bubbletea, cafes, clothes. These are wants, not needs. Live like that for few yrs and you will see some light at the end of the tunnel. Jiayou, you can do it.

Hi there,

Same situation as you (dad is solebreadwinner who doesn't earn much and mum is a housewife) and I am the only child. Was able to pay off school loan with dad's cpf and the partial scholarship. First thing I did after I started working was to ensure that their medical needs are covered, so I bought the necessary hospitalisation plans. You will have to balance between sustainability of premium vs claim limit (as being humans we would always want the highest possible but this will become really expensive when our folks get older). Next I looked at how we can optimise their cpf, and did top ups to allow the interest to compound, with aim to hit the basic retirement sum. We also did some transfer from my dad's cpf to my mum's account to ensure both are able to hit their BSR. Thankfully my parent's flat is fully paid, and hence they only need to meet a lower BSR back then. This helped to ensure that there's a source of payout when my dad stops working in future, and hopefully I can earn enough to supplement that and maintain their daily needs. And of course I also ensured that I am adequately insured just in case anything happens, they will have enough money to get by.

• Medical coverage. First thing is to ensure your parents are covered down the road if there's any illness or unforeseen accident which requires hospitalization. Even a minor day surgery is covered by insurance ( pls always check with your doctor or financial agent)

• Emergency funds. Start small and gradually build up as your income grows.

• investment. Again start small and gradually expand your investment portfolio or increase the amount as your income grows. Even if it is $100 per month into a growth stock. Your future self will be thankful for this decision down the road.

• Watch your parents diet and lifestyle. A lot of todays issue (HBL, diabetes, stroke, lack of exercise etc) has got to do with the type of food we eat and lifestyle choice. Being conscious of this helps to ensure your parents continue to stay healthy in their later years. Healthy parents = less stress for you = less stress on $$$

• Income. Find ways to grow your income. Grow your skills, be willing to learn and bring value to your colleagues at work, step up for bigger responsibilities that could bring you invisibiity and promotion.

Good Luck! ​​​

Perhaps you can set aside a sum for money for them every month, or get them a retirement/annuity plan. Very thoughtful of you by the way