1st October is observed as International day of older persons. We think they’ve navigated the toughest hurdles of their life and are finally at ease, but what we don’t realize is that something like keeping up with rapidly changing technological advancements; that is second skin to us might not be something they can grasp with equal ease. They feel alienated in this fast evolving world and need a little hand holding to navigate these new developments that are making our life convenient, but proving to be a hindrance for them.
As people age, they become more risk averse and shy away from trying new things especially when it concerns important things such as financial matters, be it managing money or investments. There’s a range of new age financial tools that they can make use of to manage their finances and relieve themselves of the chores that usually accompany these processes and make the most out of their hard earned savings. But, discussing finances is a sensitive task for many as they still trust the old practices that they have seen in their times whether it is as simple as banking. They still prefer to write cheques or fill a transaction slip for banking transactions. It’s critical that you reassure them that they can retain control over their finances even if they make use of these new age practices. Here are a few things that you can make your elders aware about when it comes to financial management:-
New Age Banking methods and threats that come along
The new age banking practices are certainly awesome as you can do everything at a click of a mouse and helps to avoid those long queues at the ban counters. Sadly, along with these benefits come a lot of threats and it’s been seen that many older people are taken in by email scams and phishing attacks. Hence while you introduce them to these new age banking methods; make sure you make them aware about the threats it brings along. For eg. Tell them not to share their transaction pin or passwords with anyone; no matter who calls them up etc. If they are new to email, see if you can create a “white list” of contacts so that they don’t act upon the fraud emails.
Systematic Withdrawal Plan (SWP)
Not everyone is entitled to pension but everyone like to get those monthly credits in their bank accounts that can help them pay for their needs and wants month on month. The best part about this arrangement is that it helps people to keep their savings under check and avoid reckless expenditure.
SWP is one such method that will allow them to withdraw a certain amount of money at regular intervals from their lump sum investments. In the long term, this can help them to get pension like money every month and relieve them of the worries of how to utilize the money effectively.
As they age, health issues will catch up. Hence medical insurance is what they would need the most so that they don’t get a dent in their pockets in the event of unforeseen medical emergencies. There’s going to be a plethora of hurdles and they should rightly insure themselves against them. But, the most important being a medical insurance, because none of the other hurdles will derail every other plan like the lack of timely healthcare.
Nominees or beneficiaries in their financial or physical assets
Talk to them about the importance of having nominees in all their financial as well as physical assets or at least have a basic will so that their loved ones, especially their partners can avail the benefits of these assets when they’re not around.
We know that they need to have money handy especially when they age. But this does not mean that they should keep their money in banks or at home only. They can still invest their money in stable products such as debt based products and let their money grow. One such investment opportunity is Liquid Fund – a new age mutual fund investment wherein people can invest money for short terms, yet get FD like returns. It offers all flexibility like a bank account would, with least amount of risks.
On this International day for older persons, let’s help them enjoy the benefits of new age banking tools like the rest of us. Whether its your father, relative or a neighborhood aunt who just won’t ask for help! Start right now by helping one elderly around you.
Or if you want we too can do it for you!