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7 Things To Do To Be Financially Secure In Old Age

Many people do not have enough to retire financially. Even when they have, life is still not comfortable because of a lack of financial literacy. So, how to secure old age?

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Amit Sethi
August 15, 2023
7 Things To Do To Be Financially Secure In Old Age

7 Things To Do To Be Financially Secure In Old Age

Being financially secure in old age is the single biggest concern of people. Once you have retired, you will no longer be capable of recovering from financial setbacks. So, you must ensure your financial security before you retire. Here are the 7 Things To Do To Be Financially Secure In Old Age to ensure a comfortable life after your retirement.

Get Adequate Size Of Health Insurance Cover

In old age, the immune system of the body is not as strong as when you were young. The body becomes more prone to diseases. With rising medical costs, it is imperative that you take adequate health insurance. It will provide you with financial protection from medical expenses in case of need. When you take health insurance, pay extra attention to what it covers and how it responds to patients’ claims. It is good to opt for a health policy that does not have capping on treatments and has the least number of exclusions.

Plan Your Low-Risk Investment Portfolio For The Retirement

Youngsters have many investment options, but seniors usually require low-risk options. Senior citizens are usually not advised to invest in high-risk assets as any adverse movements can hurt their finances irrevocably. So, it’s better to make a list of low-risk investment options well in advance for retirement. You can explore the options such as fixed deposits, debt funds, and low-risk government investment schemes.

Plan For Investments That Offers Regular Returns

Before you retire, you can start investing in schemes which pay monthly or quarterly returns. There are many schemes available in the market that serve the periodic payout needs of senior citizens, for example, SCSS, POMIS, PMVVY, etc.

Plan Your Taxes

Yes, taxes do not leave you even after retirement. So, planning for taxes is necessary. Ignoring the tax planning can increase your tax outgo and you will be left with lesser money in hand after your retirement. You can manage your investment’s asset allocation by considering its tax implication on your retirement.

Keep A Contingency Fund

After retirement, in the absence of active income, you may not be able to overcome risk and financial uncertainties. For example, what will you do if your insurance is not enough for treatment? The insurance may pay the sum promised but over and above that, it is you who have to bear the expenses. A large contingency fund comes in handy in such cases.

Manage Your Expenses

It is said that no matter how much you save if you cannot control your expenses, your savings will not help you for long. Unbridled expenses are like holes in a ship, it slowly drains all your finances. In old age, while needs are limited, many people tend to spend without any planning. It can soon exhaust your retirement corpus, so better to plan your expense very well.

Have Fun And Think Positive

While this is not related to finance, this will have the biggest impact on your finances. It can give you good health, a great balance of mind to take better financial decisions and keep you in good stead.

 

The author is an independent financial journalist

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