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  • Category: Miscellaneous

    Financial challenges in old age

    Many people after retirement, especially who do not have a Govt pension and secondary income like rent from a house etc, find themselves in a financial trap. Whatever funds they have is sufficient to provide them some interest income but the corpus is getting reduced in its real value due to the inflationary trends in the country. So, their capital is getting eroded slowly and the returns for their expenses start diminishing with time and then they have to see towards their sons or daughters for financial help. Are you aware of this problem being faced by many retired persons in our country? Please share your experience in this regard.
  • #721113
    Most of the retired persons do make formidable arrangement for their future and secure living. Some have invested money in bank deposits, some have invested in mutual funds and some have kept the liquid cash and does not believe in banking system. Most of us feel that the retired age is the curse for the elders. But in fact those who are retired persons are the most happy lot because they are earning good amount even better than their service salaries drawn And the elders need not go to the office, they do not have the pressure of work. More leisure to do many creative things. And most importantly every elder is the knowledge hub and the grand children should use them to the hilt. And the experience in them is enormous and they can tackle any problems of life with ease and thus elders should be cared and not discarded.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #721117
    Yes, it is true. People working in government offices and big corporate offices have safer life as they get a proper monthly income in the form of pensions. But 80% of people who work on daily wages or with less monthly salaries in private schools, colleges, private or corporate offices have to face a lot of insecurity in their retired life. During their early life, with the low monthly salaries, these people have to lead their life with a lot of difficulties. There is nothing to save for their later life from this salary. The little amount of PF that they got at their retirement is not sufficient to support them in their later life. The EPF pension what they get mostly will be Rs.1000 to Rs.3000 and in an inflationary state, it is not even sufficient to buy medicines. Mr.Modi and BJP promised these people before the 2014 elections to double the pension but this promise was never kept till now. So after retirement life will be a nightmare for the people unless the children help them in a kind-hearted way. With the severe decrease in monthly interest, the old individuals are facing all kinds of financial problems.

  • #721121
    I think it's the most serious topic I have seen on ISC. Since the author understand this issue for obvious reasons, I can understand it.
    Old age is a very difficult age for some people, especially, for those who had not been in government sector. Retired government employees have pension facility which protect them from stretching their on hand before their sons or daughters. Their pensions serves for them as their son who bears his expenses when he is not able to work.
    But problem is for them who are working in private sector or who's incom is not very good, they are mainly depend on their sons for their expenses. And what about the people who have no sons at all?

  • #721183
    It is true. The value for money over a period of time is diminishing and hence the value of the money what we save will come down over a period of time. Many private employees after retirement will face this problem. Whatever little money they saved will be kept in the bank. But the returns will come down due to decreased income rates. Even the EPF pension scheme introduced by the then government of India is also a curse to the individual. The amount of that goes to government is more and the amount they offer is very less.
    Really, it is very difficult for some people who don't have any reserves and who will not get any help for their wards. The old-age pension scheme is there but they are also very little and not sufficient for their living. Many people suffer a lot during their old age due to lack of financial support. Many people are facing difficulties in their old age. How to overcome this is a big issue.

    always confident

  • #721272
    Nowadays there is no Govt pension and everywhere the old people are facing same problem that their funds are not sufficient to provide them good interest amount and they have to depend financially on their children only. So far our great culture is there in which children generally keep the parents with them and there is no problem right now. Only problem is expected to come in next generation when people become more and more oriented to nuclear families. Some old people feel that if they have good corpus in their name the children will take better care of them.
    Thoughts exchanged is knowledge gained.

  • #721278
    Very few people after retirement are getting comfortable amount of pension per month. I think the same privilege is applicable to the employees of central and state governments. Moreover, their emoluments are inclusive of DA and the amount of pension is likely to go up with the time because the same is linked to DA. They are the lucky people but the same privileges are meant for all pensioners. We are aware of the people working in private sectors or with the organisations where such pension facilities are lacking. These retired employees are getting maximum Rs 3,000/- per month and this amount being the maximum amount very few retired people are the recipient of this amount.
    The retired people are not supported by FD interest of the banks due to its reduction considerably. Their lives have been miserable in absence of their supports from their siblings. Though there is the provision of EPF pension for these employees but that too is a paltry amount and with that amount they cannot pull on their lives comfortably.

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