Should I dip into my Rs 20 lakh savings to fund my parents’ Rs 20 lakh home renovation?

I’m 26, have Rs 20 lakh saved over 4 years of working. My parents are retiring soon with pension and rental income (tier-3 city). Their house hasn’t been renovated in 25+ years and needs an upgrade—tiles, UV-coated windows, a room restructure—totalling Rs 20 lakh. About 85% of the cost is practical, not aesthetic. I plan to contribute Rs 5 lakh. The rest would come from their savings. Emotionally, I want them to live comfortably, but I’m hesitant to deplete my savings.

Should I contribute more now or support them later when needed? Would love advice from others in similar situations.

Advice by Anooj Mehta, Vice President – Partner Success at 1 Finance

Many young professionals find themselves facing an emotional and financial dilemma, and it is important to strike a balance here. Based on the details your shared, your profile clearly reflects discipline in saving, as in 4 years, you have been able to save Rs 20 lakhs at this age. This means you will be able to rebuild the Rs 5 lakh if you use it now for renovation, relatively quickly, making this choice a far less risky outlay than it may appear at first.

It makes sense to contribute the Rs 5 lakh today for renovation:

1. Avoid Debt Burden: Using savings instead of borrowing prevents EMI stress and interest costs.

2. Addresses immediate needs: The renovation will improve the comfort and safety of your parent’s retirement life stage.

3. Clear value: With 85% of the work being functional and not cosmetic, the expense is an investment in quality of life, not luxury.

Your parents’ financial security is covered. The pension and rental income will provide a stable base for their daily living needs. This reduces the likelihood of needing ongoing monthly support and makes a one-time contribution for renovation easier to absorb right now.

Actions you can take:

1. Contribute the planned Rs 5 lakh now

2. Retain Rs 15 lakh in savings after the contribution

3. Continue your current savings habit to replenish the Rs 5 lakh within a year or two

4. Start a dedicated parental support fund by setting aside Rs 5,000–Rs 10,000 monthly for any future emergencies

Balancing portfolio

Balancing personal savings with family responsibilities is never an easy decision, but in this case, contributing ₹5 lakh toward your parents’ renovation seems both practical and emotionally fulfilling. Your ability to save consistently at a young age gives you the flexibility to rebuild this amount in the near term without compromising long-term goals. More importantly, your contribution ensures that your parents’ home is safe, functional, and comfortable during their retirement years. By supporting them now with a one-time expense, while continuing disciplined saving habits, you strike the right balance between financial prudence and family well-being.