As 2023 comes closer to an end, several events happened during the year that you should keep in mind as learning to improve your financial health in the future. Seniors depend on retirement corpus to meet their expenses and by staying updated they easily avoid financial distress. So, here are 3 Financial Lessons For Senior Citizens that can help them become financially stronger and meet their financial goals without any difficulty in the future.
Beware Of Newer Financial Fraud Happening Another Day
Financial frauds are happening every day but the greater concern in 2023 had been the targeted frauds against the senior people. Seniors living alone are usually at a greater risk of fraud. Recently a senior citizen lost more than Rs 1 crore in Bengaluru after being defrauded by a scammer. The victim senior citizen was cheated by a person claiming to be a police officer and investigating a fake bank account opening. Apart from this, several financial frauds were reported in which the senior citizens were victims and they lost money by sharing their identity with an unknown person or sharing their bank transaction OTP.
It is important to stay aware and learn from such fraud cases that were reported in the year 2023 making it one of the most important financial lessons. With artificial intelligence becoming more accessible, it also increases the risk of newer ways of fraud and scams. The only ways to avoid financial scams are to stay alert, keep an eye on your bank account and financial instruments, and never share your crucial financial data with anyone. Despite all efforts if you are duped, immediately report it to the concerned financial institution and the police.
Also Read: Lessons You Can Draw From AB de Villiers’ Early Retirement
Stay Updated On New Technological Advances
Artificial intelligence is now becoming a part of our daily lives. However, it is useful for only those who know how to use it! In 2023, several AI-related announcements were made. At the end of the year, one thing is clear AI can make the lives of seniors easier if they know about its various applications. For example, seniors can take the help of the AI for writing emails, reading their emails, keeping records of their expenses, tracking their vitals and notifying doctors if there is an issue, keeping track of their location, reporting a fall detection to the caretaker, etc.
After crossing 60, you should focus on making life easier and AI can help you do the same.
Stay Invested To Beat Inflation
In 2023, one of the big concerns for most of the investors had been a high inflation rate. By staying invested and earning a return greater than the inflation rate, you can beat the inflation.
Seniors usually depend on low-risk instruments such as bank FDs and small savings schemes to generate a regular income for meeting their expenses and financial goals. A high inflation can result in a negative real rate of return from such low-risk investments putting seniors at risk of wealth erosion. Seniors can learn from the inflation they witnessed in 2023 to choose investment instruments carefully so that they can earn a higher real rate of return. Diversifying the investment into appropriate investment instruments can help them lower the risk and get a higher return on the investment at the same time.
Apart from the 3 financial lessons mentioned above, seniors must also review their performance toward the financial goals that were set for the year 2023 and take appropriate steps for betterment in the New Year.
The author is an independent financial journalist.