Giving your children a piece of your retirement corpus might feel like love-but it could quietly dismantle your future. In a striking LinkedIn post, Girish Agrawal, a former income tax officer and now a mutual fund advisor for PSU retirees, warns about a financial trap that too many Indian parents fall into: turning into ATMs for their adult children-and risking their own stability in the process.
Agrawal tells the familiar story of a government officer who retires with a tidy ₹1 crore after decades of service.
But as soon as the money arrives, so do the requests. One child is still chasing a startup dream. The other’s spouse wants to open a franchise. Moved by love and guilt, the retiree hands over large portions of his corpus-without a financial plan in place.
The results are rarely catastrophic but often corrosive. The businesses limp along, returns are delayed indefinitely, and the retired parent, once financially secure, is suddenly dependent on a business that was never built for him.
No structured withdrawal plan, no pension, no safety net-just mounting anxiety and shrinking savings.
“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 outlines a stark truth: most children ask for capital, not long-term custody. And many don’t realize the financial pressure their parents absorb in silence.
Instead of handing over large sums, Agrawal urges retirees to first secure their own income for at least 25-30 years. Treat any financial help to children like a business transaction-with documentation, repayment terms, and clear boundaries. Above all, communicate. “Your children love you-but they don’t know how tight your runway is,” he writes.
“Your children will respect you more when you live with dignity, not dependency. You owe yourself a peaceful retirement. You don’t have to buy it with guilt.”