It is no hidden secret that India is witnessing a rise in its senior population. A report by the Ministry of Statistics, Government of India, released in April 2016, throws some light on the actual rise in these numbers. In fact, the number of Indian citizens beyond the age of 60 has witnessed a record jump of 35.5 per cent from the 2001 figure of 7.6 crore to 10.3 crore in 2011, according to an article published in The Indian Express, citing the data released by the Ministry.
Sound financial planning on the part of an individual should therefore take into account old age as well. It will be the all-important stage of your life, where you no longer have a steady flow of income and might become heavily reliant on the investment decisions you made during your hey days, while you were actively employed.
3 Financial Planning Tips You Must Consider
If you haven’t already, then you must start making sound investment decisions right away, to ensure you live through your old age without any worries. Here are three things you must consider:
- Child’s Education: Have you worked on a child education planner yet? As your kids grow, so do their needs. During your earning phase, you will have to factor in the rising costs of children’s education and start saving early. Secure your child’s future by exploring child education policies that can reap rich dividends by the time your child grows up and is ready for higher education.
- Retirement: One must realize, and realize it quite early in life, that there will be no escape from meeting your average monthly expenses on essential items, such as food, rent, mortgage, fuel, medicines, etc. So, when your steady flow of income stops, you must have a retirement fund to utilize during that period. One great way to begin is by using a retirement calculator that you will find quite easily by visiting an online portal of a reputable insurance provider.
- Medical Emergencies: As we age, we become more prone to illness. Your old age financial planning must provision for uncertain medical emergencies, either by way of saving enough money or through a medical insurance plan that will come in handy during costly medical procedures and expenses in old age.
You should also regularly follow-up on these plans and make any changes required, based on your changing needs.
“Predicting rain doesn’t count. Building arks does.”
~ Warren Buffet, leading American business tycoon, investor and philanthropist.