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World Senior Citizens Day 2023: 5 Ways To Financially Empower Yourself In Old Age

World Senior Citizen Day 2023: On this day we tell you how senior citizens can apply prudent strategies to feel financially free in their retirement years

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Meghna Maiti
August 21, 2023
5 Ways To Financially Empower Yourself In Old Age

5 Ways To Financially Empower Yourself In Old Age

To make the golden years of one’s life actually ‘golden’, it is important that senior citizens empower themselves financially so that they can steer this stage of their lives smoothly. While a regular income is a need, health, and other issues also need to be looked at for this. Here we look at 5 Ways To Financially Empower Yourself In Old Age through which seniors can finally achieve financial stability and strength.

Retirement Planning: Retirement planning is the foundation of financial empowerment for senior citizens. However, this is something that cannot be left for later years, but needs to be started early in life.

Once retired, it involves assessing one’s financial resources, estimating future expenses, and creating a comprehensive plan to ensure a comfortable life after retirement.

Senior citizens should consider their pension benefits, savings, investments, and any other sources of income. Consulting financial advisors can provide valuable insights into creating a post-retirement financial plan that aligns with individual goals and risk tolerance.

Diversifying Investments: This is one strategy that can help senior citizens manage risk while potentially earning higher returns. It involves spreading investments across different asset classes, such as stocks, bonds, real estate, and fixed deposits.

Says Renu Maheshwari, chief executive officer, and principal advisor, Finzscholarz Wealth Manager and a Sebi-registered investment advisor: “A diversified portfolio can provide a cushion against market volatility and inflation. However, it’s crucial for senior citizens to balance potential returns with their risk tolerance and liquidity needs. While it is important for senior citizens to protect their capital, and so invest majorly in debt, with increased longevity, it is also important that one has some exposure to equity to supplement the income source. Seeking advice from financial experts can assist them in making informed investment decisions.”

Healthcare And Insurance: Healthcare expenses can significantly impact a senior citizen’s financial stability. Acquiring comprehensive health insurance is essential to cover medical costs and ensure access to quality healthcare without depleting savings. Many insurance providers offer plans tailored to the needs of senior citizens.

However, senior citizen policies often come with deductibles and co-payment features to reduce the premium, which means that one needs to pay a certain amount out of one’s own pocket. So apart from health insurance, it is also important to have a healthcare corpus so that medical expenses do not catch one unaware.  

Estate Planning: Estate planning involves creating a clear roadmap for the distribution of assets after one’s death. Senior citizens should draft a Will, designate beneficiaries, and establish trusts if necessary. Proper estate planning can help minimise estate taxes and avoid legal complications for heirs.

It’s advisable for senior citizens to periodically review and update their estate plans to reflect any changes in their financial situation or family dynamics. Obtaining legal advice guarantees that the estate plan is legally valid and conforms precisely to the individual’s intentions.

Engaging In Entrepreneurship And Part-Time Work: Retirement doesn’t necessarily mean the end of one’s productive career. Many senior citizens possess valuable skills and experiences that can be channelled into entrepreneurial ventures or part-time work. Engaging in such activities not only provides financial support, but also offers a sense of purpose and fulfilment.

The gig economy and online platforms provide various opportunities for seniors to offer their services, whether it’s consulting, writing, tutoring, or other creative endeavours. These endeavours can supplement retirement income while keeping the senior citizens mentally and socially engaged.

By adopting these strategies, senior citizens can also pave the way for a more secure and dignified future.

However, it’s crucial for them to seek guidance from financial experts, legal professionals, and healthcare advisors to tailor these strategies to their unique circumstances. With the right approach, senior citizens can achieve financial independence and peace of mind in their golden years.

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