Apart from the plethora of articles that we keep reading on retirement, there are a few factors that one must consider post-retirement. These are more emotional in nature and are an inherent part of a retired person’s life. Let us take a look at 4 post-retirement must dos:
Financial Dependents and Mentally/Physically challenged, specially gifted dependents
The most important factor of consideration for Retirement Planning during the working phase and also the utilization of retirement funds and the financial implications of not factoring the Health care costs may severely impact the financial well-being of the family. It is a well-known fact barring a minor p One of the most commonly observed phenomenon in the modern times are that, much in contrast to an age old belief that by the time the primary bread-earner/s in a family retires, the children are self-sufficient and can fend for themselves financially. This is the aspiration of anyone for that matter, but the irony of the fact is that due to late marriages, which means that by the time the bread-earners are nearing the age of retirement or have retired, there exists a high probability that the children may still be pursuing higher education or non-earners financially dependent on the parents, this may further become burdensome on the aging parents.
It is also observed that a family may also have financially dependent specially gifted children/Dependents who have to be given special care meaning which these special needs might also be leading to financial requirements towards recurring health care expenses, hospitalization expenses, etc. Hence, it is always prudent to consider this requirement and factor any of such special needs while planning for retirement in the working phase itself.
The burgeoning economy, the higher disposable income, the ever changing needs and aspiration of the people have led to a dynamic change in retirement planning and utilizing the Retirement Funds. One of the key-changes observed in modern times is the philanthropic angle and contributing towards the same starting quite early in the working phase of life itself. The objective of such goal is to create a Trust or Support a NGO/s working for a social-cause and welfare of the society at large. This not only plays a vital role in reducing the tax-burden up to a significant extent in the post retired but liable to pay the Income tax. This may go a long way of distribution of wealth channelized through the right avenues(read NG0’S/Trust etc.) to the needy and downtrodden strata of the society and may as well lead to the reducing the government’s Burden of providing the Social Security up to an extent.
Restart of 2nd Innings
It also has been identified with the changing needs and requirements of the people in general, there is also significant chunk of elderly people opting for jobs post retirement not only does it serve as alternative income source but also the vast expertise of the elderly people serves as a guidance force to the younger generation of work-force resulting as a pivotal value-addition leading to enhanced productivity levels too. Moreover the elderly also have an additional buffer to tackle the health risk associated with old-age as most of the corporates provide comprehensive health risk cover for employee and financial dependents which would act as a blessing in disguise for majority of the aging Indian population who are underinsured and especially for elderly people who are uninsurable may also be covered in a corporate health plan at no additional cost or nominal cost of Health insurance.
Succession Planning and Will Creation
One of the most important aspect of Personal Financial Planning is to have a clear-cut idea of the transfer of assets to the next generation. This is only possible with the creation of a Will, this aspect of personal financial planning or Succession Planning ensures smooth and hassle free transfer of assets to the rightful heirs and also ensure that the assets are utilized as per the expectation of the Testator or the person writing the Will. The will should feature the name of the Testator, the Beneficiary/s-The names of people entitled to the assets mentioned in a will, the bequest-Process of transfer of Assets, the Details of the Executor-The person entrusted with the execution of the will, Administrator-The Person managing the assets mentioned in a will.
All of the above mentioned factors under the astute guidance of a professional and comprehensive Financial Planner plays a vital role in helping the elderly people in taking a better informed decision ensuring the smooth and efficient management of the personal finances of an elderly retired person in leading a happy and financially independent post retired life and most importantly would also that it lead to “Complete Financial Freedom”