**Video **

How Senior Citizens can Plan their Finances” held on September 23, 2022. Speaker: Mr. Surya Kant Sharma, Senior consultant - AMFI; Ex DGM – SEBI. Click on link below to watch video:  https://youtu.be/TGqRAhv3KfI

Summary

Financial needs of senior citizens are relatively different from younger people and therefore sufficient funds have to be available at the disposal of senior citizens for the following:

  1. Taking care of regular expenses like daily and monthly expenses

  2. Taking care of expenses relating to medical needs in the context of aging related medical issues

  3. Recreation activity which is also needed for rejuvenating and making ourselves fit and agile

It is prudent to ensure that our life is comfortable, relaxed and enjoyable. Live life on your terms and inculcate the habit of enjoying your life!

It should be a priority for senior citizens to systematize their finances as well as your life – daily, monthly and short terms needs be well defined in a clear manner.

Financial needs of senior citizens can broadly be of three types:

  1. Immediate needs: for 1 - 6 months

  2. Medium term needs: family and social obligations for next 3 – 5 years, like marriage of children or grand- children, celebrations in family etc

  3. Long term needs: next 5- 10 years more on legacy issues

Have an emergency fund of Rs.5 – 10 lakhs which can be then invested in Fixed Deposits

It is indeed necessary for every senior citizen to broadly assess and quantify their finances including bank deposits, investments and movable and immovable assets.

To minimize worries and stress and a hassle free life, relating to finances, senior citizens should preferably:

· Have only 1 or 2 bank accounts because managing multiple accounts could pose avoidable problems. It is a good idea to have joint account with spouse or children.

· Nomination in all bank accounts, lockers, investments is a MUST.

· Senior citizens should preferably have only one locker and that too with the nearest bank branch, as it will be easier to manage the locker since commuting to the locker might be difficult.

· Senior citizens should, if need be, have only one credit card and use of this credit card should be made quite judiciously – always pay the credit card bill before due date(s), always make full payment of the credit card bill and should never go for EMIs/part payment of credit card. Transactions on credit cards should be minimum, as maintaining of record might be challenging.

· Avoid online transactions if you are not absolutely comfortable and never share OTP, bank details to known or unknown persons

· Make a checklist of mandatory, regular payments which you have to make every month /quarter / year, so as to avoid penalty of late payments

· Avoid investing money in risky products (including securities and mutual funds unless you are apt and comfortable and instead senior citizens should focus on risk-free investment that give you guarantee of regular returns which are  mostly government/RBI/PSUs savings schemes.

· Avoid investing in real estate. Process of acquisition is cumbersome – including payment of stamp duty charges & brokerage charges. Also maintaining a property when you are a senior citizen could be a problem

· Do not give your assets or property to your children when you are alive

· Prepare a will that clearly states how your assets will be shared by your heirs, so that there is no dispute amongst them in future.

 

NEVER, EVER INVEST IN CHIT FUNDS, COMMITTEES AND PONZI SCHMES FOR HIGHE RETURNS

**- **As shared  by Mr Surya Kant Sharma, Senior Consultant – AMFI (Ex DGM SEBI) at a webinar entitled “How Senior Citizens Can Plan Their Finances” held on Sept 23, 2022 for Vayah Vikas members