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This lack of unawareness can lead to great hardship in their sunset years. As a result, it becomes the moral responsibility of their grownup children to help them with retirement planning way before its onset.
In India, planning for retirement needs is often a post-retirement preoccupation. Most retirees have no idea whatsoever of the probable expenses they would need to undergo month by month. This lack of unawareness can lead to great hardship in their sunset years. As a result, it becomes the moral responsibility of their grownup children to help them with retirement planning way before its onset. First and foremost, they need to ascertain whether their parents’ post retirement incomes would cover their post retirement expenses given the fact that their incomes would no longer come in the form of salaries, only pension and other investment proceeds.
If the retirement is due in a couple of years, the children can assume the responsibility of certain household expenses to ease their parents’ burden to that extent. If retirement is five to six years away, they can advise parents to switch investments in stable assets like debt funds or fixed deposits. Only a small portion should be in equity funds to guard against inflation. Health is another key area.
Appropriate medical insurance is a must-have post-retirement. For this, children can either include parents in family floater schemes or buy them a senior citizen health insurance policy. Maintaining an exclusive emergency fund is also imperative for addressing abrupt cash needs that could otherwise cause financial strain. If the retirement corpus is likely to fall short of post-retirement needs, they can start a SIP on parents’ behalf to bridge the gap. Last but not the least; they should help their parents acknowledge the importance of timely wills and nominations in steering clear of any legal hassles in future.
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