Most of us worry about our parents’ retired years. They strive all the life to give the best to their offspring, ending up compromising on their future. Often, parents neglect adding to their retirement fund. As a result, they would not be able to enjoy the labour during their sunset years. According to a survey, 55% Indian parents do not even consider retirement savings as one of the crucial money goals.
If you have aging parents with no enough retirement savings, help them get their finances in shape. Here are the steps you can take to assure them peace of mind by securing their financial future.
STEP 1: Strike The Retirement Conversation With Your Parents
It may be tough, but essential to strike a conversation with your parents on retirement. Talks help the family get a clear picture of with where they stand and what to expect in the future. Help them understand the need to change the way to set the future. These conversations can get tough, but they are essential and need to be a part of life. Talk to expert planners or advisors to get a better picture and plan accordingly.
STEP 2: Share The Burden
The main reason for parents not focussing on retirement savings is the continuous financial support given to their children all through their working years. It’s time that kids pay off. Children can ideally start sharing parent’s financial burden right from their higher studies by applying for education loan and clearing it off after education. Share the household expenses with your parents, if you are earning and staying with them.
STEP 3: Get The Right Insurance Kitty
The biggest threat during the retirement years is the rising healthcare costs. Adequate health insurance cover helps them stay covered and secured. If your parents are not too old, consider getting a comprehensive health insurance plan for them. If your parents are senior citizens, identify the best fit for them as medical insurances for senior citizens come with conditions.
STEP 4: Help Them Change Their Approach
If your parents are not prepared for retirement, help them explore investment avenues like equity-oriented mutual funds to bolster their savings. The retirement corpus cannot be built with the traditional instruments, as their returns continuously coming down. A proper financial planning helps them get their finances in order and lead a dignified retired life. Seek expert financial guidance from professionals like ArthaYantra to make well-informed decisions.
On the other hand encourage them to explore more living options by downsizing or moving into a more affordable house in an affordable locality. Find ways to cut down on costs and build substantial retirement corpus. Let their sunset years be happy and content.