My dad is 54, owns his home but has $10K in savings. I don’t know how to get him to invest for retirement. Please help!

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It’s hard to ticker idiosyncratic you emotion attack status with astir thing saved, particularly erstwhile that idiosyncratic is your parent.

Let’s accidental your dada is 54, earns $70,000 a twelvemonth moving arsenic a contractor and owns a location worthy $400,000 outright. He’s debt-free, but helium doesn’t person a 401(k) and has lone $10,000 saved successful a brokerage account. He’s starting to deliberation astir retirement, and you’re starting to panic. Is it excessively precocious for him to drawback up? Can you help?

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It’s not a large spot to beryllium in, but he’s acold from alone. A CNBC survey (1) shows 40% of American workers are down connected their status savings. Meanwhile, Americans judge they volition request astir $1.26 cardinal saved to discontinue comfortably successful 2025, according to Northwestern Mutual's 2025 Planning & Progress Study (2).

With your dad’s status savings sitting astatine $10,000, he’s acold down wherever galore Americans judge helium should be, particularly astatine his age. Still, each is not lost.

With a dependable income, nary indebtedness and a invaluable home, your dada has immoderate advantages. The cardinal present is utilizing the adjacent 10 to 15 years wisely. Here’s however your household tin assistance him crook things around.

There’s nary getting astir the information that your dada has fallen down connected his savings. Some fiscal advisors urge having astir 7 times your wage saved by property 55, which means your dada should person $490K successful his status account.

But helium should instrumentality solace: The Federal Reserve says the 2022 median status savings magnitude for Americans ages 55 to 64 was lone $185,000 (3).

“There are truthful galore individuals, young, mid-career and heavy into their career, that are not redeeming capable for a steadfast and unafraid retirement,” Jacqueline Reeves, the manager of status program services astatine Bryn Mawr Capital Management, told CNBC.

But your dada has immoderate things going for him — helium owns his ain location outright. Second, he’s debt-free, thing that lone 23% of Americans tin say, according to WalletHub (4).

Even so, it could wage to instrumentality a adjacent look astatine your dad’s finances with an oculus for budgeting. For instance, security is apt thing your dada is overpaying for. According to a study from the Consumer Federation of America, (5) homeowners’ security premiums roseate by 24% connected mean implicit the past 3 years. In fact, mean homeowners' security premiums per argumentation accrued 8.7% faster than the ostentation complaint betwixt 2018 and 2022, based connected information from the U.S. Department of the Treasury (6).