'Indian retirees are going broke helping their kids': Advisor calls it a financial time bomb

By Admin

04 Jul, 2025

In India, retirement is often seen not as the end of work, but as the beginning of giving. For many parents, especially those who served in public sector jobs, retirement is a moment of pride years of disciplined service rewarded with a retirement corpus, sometimes upwards of ₹1 crore. But what should be a cushion for peaceful living often turns into a financial trap.

In a powerful LinkedIn post, Girish Agrawal a former income tax officer turned mutual fund advisor for PSU retirees calls this trend what it truly is: a financial time bomb. His words are sobering and necessary:

“He became the ATM for everyone else… and forgot to keep cash for himself,” Agrawal writes. “This is not generosity. This is financial self-neglect, wrapped in emotional guilt.”

Agrawal recounts the case of a retired government officer, flush with savings, who finds himself under pressure from his children. One child wants to pursue a startup dream. Another wants seed money for a franchise business. Without a proper financial plan, the retiree hands over large chunks of his corpus thinking he's helping his children build their futures.

The reality? The businesses rarely deliver. Returns are delayed. Risk piles up. And the retiree, once financially independent, finds himself stripped of financial freedom left with no pension, no income plan, and a rapidly depleting bank balance.

The tragedy isn’t just in the loss of money, but in the erosion of dignity. Many retirees begin to depend on their children for daily expenses, medical costs, and more often quietly, often with shame.

Agrawal notes a vital truth: most children ask for capital, not long-term responsibility. And most parents, fueled by love and guilt, fail to safeguard their own interests.

His advice is clear and direct:

• Prioritize yourself first: Ensure your financial runway lasts 25–30 years.
  
  

• Don’t confuse love with sacrifice: Giving your retirement money isn’t always helpful.
  
  

• Treat financial help like a loan: With paperwork, repayment terms, and clear boundaries.
  
  

• Have an honest conversation: Your children may love you but they often don’t understand the risks you're taking.
  
  

“Your children will respect you more when you live with dignity, not dependency,” Agrawal concludes. “You owe yourself a peaceful retirement. You don’t have to buy it with guilt.”

This message rings louder today than ever before. As Indian retirees navigate a changing economic landscape, the need for self-awareness, financial literacy, and boundaries is not just important it’s essential.

Retirement should be a reward, not a rescue mission.