WHAT A PERSON SHOULD DO TO MAKE OLD-AGE SECURE FINANCIALLY?
Importantly, it should never be forgotten that when we are in sound health, we should sweat or work hard, so that we earn by using sincere means and procedures. While earning our living is very nice, we all should do but we should deposit some of our earnings/savings to be used in rainy days; while we are old and not able to earn due to our ill-health or nothing productive to do.
It is in the fitness of things to understand what is is age when we think ourselves ‘old’ ; when we are not able to keep ourselves active and cannot move freely as we do hitherto in our youth time. You are as old as you feel yourself to be holds good for old-age too. Factually, senior citizens, due to their grit and determination, remain active even after 65+ years of age, of course with resolute mindset and strong strength of mind.
However, it is advice-able to save something for meeting the old-age period by some of the methods:-
- From the day a person gets a meaningful employment, he/she should start contributing in Provident Fund (PF) or any other venture which fetches higher rates of interests and it could be continued till superannuation of the concerned person. Care ought to be exercised that we should not take out money from PF or any deposit done at a fixed period of time but on the other hand, we should endeavour to increase the deposit to a maximum amount permissible for an employee which is as per the status and the pay band in which person is placed.
- Then we should start deposit by way of SIP plans (Simplified Investment Plans) and other mutual funds according to our saving propensity – but these should be a long term deposit plan, only to be taken out when hugely required to meet any emergency contingencies in old-age while our inflow of regular income just dries up; if pensionary benefits are not there in place,
- Subsequently, we can deposit in Fixed Deposit in Banks and Post Offices which could be for minimum of one year or more years and these could be extended to a period a depositor wants according to his/her capacity.
- Then, when a person retires from the active service, he/she may get pensionary benefit in the form of gratuity, commutation, amount to be received for annual leave not availed, PF etc. This corpus of fund could be deposited in the Bank and if required, the interest accrued from this fund could be taken month-wise for meeting the expenditure required.
All the above deposits could be utilized in the old-age; for meeting expenditure for contingencies like sickness besides purchase of house etc. but this ought to be done from our youthful time, when an individual is physically good and mentally sound.