TAKING CONTROL OF FINANCES POST RETIREMENT: 7 KEY CONSIDERATIONS BEYOND HEALTH INSURANCE
Financial planning for old age and illness shouldn't just focus on health insurance. You don't have to feel helpless about your healthcare expenses or the quality of care you receive. You can take control and manage your money wisely now. In a column in ET Uma Shashikant, the Chairperson, Centre for Investment Education and Learning lists 7 tips to manage your finances for old age and healthcare.
Start earlyTake control of what you're able to. You're responsible for your own well-being. Stay active and healthy to maintain independence. Allocate some of your income to prioritize your health and invest in yourself. Without dedicating time and money, your personal goals will remain unrealized.
Simplify your financesAvoid losing control over your health and fretting about unfinished business in your final days, such as informing your children about assets or debts. Simplify your affairs by maintaining clear and organized records. Ensure easy access to your finances for health-related expenses when necessary.
Assessing the value of hiring a paid caregiverRather than allocating significant funds to complex healthcare or unused assets, prioritize setting aside money for your essential care. Understand that relying on your children or loved ones for constant care may not be feasible; instead, plan for paid services to meet your basic needs. Approach your healthcare decisions with rationality, and ensure that funding for these needs is integrated into your financial planning.
Palliative care: Is it right for you?You have the option to choose home care over hospitalization, where you can manage pain and discomfort with simple medications. You can also decline expensive and invasive medical treatments that prolong life without purpose. Consider creating a living will that explicitly states your preferences, including refusing hospitalizations and life-support equipment.
Join a community of similar mindsAs you age, your children and grandchildren may be occupied with their own responsibilities and pursuits. Rather than feeling neglected, seek companionship from others who share your interests and have time to spare. Surround yourself with like-minded individuals who can provide companionship and support. Social media platforms offer opportunities to connect with a broader community and stay engaged.
Avoid falling into nostalgia trap Don't become a senior citizen who dismisses the value of modern life. Each generation tends to view the next with skepticism, but it's important to recognize that every era has its merits. You can't live in the same world as the younger generation, but that doesn't make their world inferior. Nostalgia for the past may feel comforting, but it doesn't change the reality that times change and each era has its own significance.
Promote goodwill Ease your children of any burdensome guilt and undue sense of obligation. What you've done for them, they're likely doing for their own children now, as it should be. Reserve a portion of your wealth for your own needs, and consider giving away what you can while you're still alive. Your wealth can support important goals and endeavors of your children, siblings, caregivers, and others who have been there for you. Don't feel compelled to hoard your wealth indefinitely; use it to enrich the lives of those you care about.