Adopt the SAFE formula for financial security of senior citizens

Adopt the SAFE formula for financial security of senior citizens

Financial security becomes very important with increasing age. If the financial planning is right, then one can live a worry-free life even after retirement. For this, follow the SAFE formula which is based on savings, assets and expense management.

That is why financial security is important

Senior citizens can live their life happily and contentedly even after retirement and can take care of their health.

They do not have the stress of being dependent on someone, this gives them mental peace.

Those whose financial condition is good. Their morale also remains high

You should also take these steps

To get a clear picture of your parents' financial condition, collect the necessary documents like birth and marriage certificates, social security and insurance policies, bank credit card and investment account details, house, car and other property papers, tax returns of the last 3-5 years, medical records and doctors' details, login ID and password etc. and keep them in a safe place or make a digital copy and take a backup.

SAFE FORMULA

Savings and Investment (S)

For stable income after retirement, it is important to choose investment options that give safe returns.

Senior Citizen Savings Scheme:

This scheme is the safest for people above 60 years of age.

7-8 percent annual interest is available. You can invest up to ₹ 15 lakh in this scheme with a tenure of 5 years.

Annuity Scheme:

Under this scheme, you can invest a lump sum amount and get regular income in return.

Property and Passive Income (A)

It is very important to have additional sources so that you do not face any problem in case of emergency.

Rental Income

If you have additional property, then you can get regular income by renting it out.

Reverse Mortgage Scheme

Senior citizens can get monthly pension by mortgaging their property with the bank. There is no need to sell the house in this, the bank gives regular amount based on the value of your property.

Financial Planning and Insurance (F)

It is important to make all financial plans for the protection of health and property.

Health Insurance

Medical expenses also increase with age. These provide financial protection at the time of accident. It is very important for senior citizens to take health insurance.

Term Insurance:

This is a type of life insurance that provides coverage for a fixed period.

Expense Management (E)

Make a monthly budget and try to reduce unnecessary expenses

Take advantage of government schemes:

Take advantage of government pension scheme or old age pension scheme and get information about subsidies and discounts

Avoid financial fraud

Be cautious while making online transactions, do not give your information to anyone over the phone