Maintaining Financial and Emotional Independence in Elderly

Last Updated on May 20, 2021 by MoneyVisual

As you retire, the challenges of work may not last, but those of life continue to crop up. Financial independence is the biggest to hit you hard if you haven’t made any plans for your retirement. Your financial health is directly impacting your emotional health.

But, life does not have to be bothersome after retirement. You’ve already put in your best for several years. You deserve the peace of mind. To make things stress-free for you, we will share some tips to maintain your financial and emotional independence after retirement.

Devote Time to Look After Your Health

Instead of sitting at home and sleeping all day long, you can devote time to your health. According to Passion Tree Care Services, a company that specializes in Elderly Companionship Services, “It’s extremely healthy for your emotional health. You can keep up with a schedule.”

Exercise in the morning or you may even go for a jog with your partner. Having a morning routine is a blessing! The pursuit of having a perfect morning does not come to end even after retirement. So, devote your time to your health.

Make Good Investments

Consider investing in traditional investment schemes such as bank fixed deposit accounts, Senior citizen income schemes, savings certificates, and post office income schemes. These investment options will allow you to have a steady income while you spend your golden years free of any stress.

You may consider investing 70-80% of your savings in such traditional investments. Besides, you may also opt for non-traditional schemes for investment that include non-tax-free bonds and mutual funds. These investment options are worth your hard-earned money for several years. The risk involved is low and would do perfectly for your risk appetite after retirement.

You may apportion 10-20% of your savings for investing in such schemes. Plus, with investment in mutual funds, you would be diversifying the risk and increasing the probability of earning good returns. Making investments tops our list of steps for achieving financial independence for the elderly.

Keep an Eye on Your Bills

As you retire, your income won’t be the same. Though you would be entitled to a pension, it won’t be enough to help you sustain your lifestyle. Expenses may appear like a mountain. However, since you won’t be having much, you must consider essential bills first.

Electricity and gas bills are your top priority. Crossing out bills for luxurious and extravagant subscriptions for clubs must be secondary in your bills list. You must make wise decisions with money so that you’re able to maintain your financial independence.

Buying electricity and gas from the same company would save you big! Plus, paying with direct debit will allow you several discounts. These discounts every month on your bill accumulate to good savings when compared to other options for payment.

To save bills, you may also need to keep an eye on the electricity you use. Keep the temperature 1 degree low to save bills. 

Plan your Pension

Maintaining your financial independence after retirement would require you to think wisely. And, nothing could be wiser than having a perfect pension plan. Consider investing in pension plans if you haven’t started yet. It’s never too late.

You can still accumulate something, which would be of good use to fund your expenses after you retire. Private pension plans are good. You may also file for state pension plans as you will be entitled to a range of other benefits as well. So, planning your pension is an important step. Even though the money would only be a small portion of your monthly income. 

Avoid Debts

Instead of committing to having a lavish lifestyle after retirement, you must consider cutting down on your bills as much as possible. The funds you have for retirement are essential for your survival with a stress-free mind for the rest of your life. So, avoid falling into loan schemes to buy high-value assets such as properties, and cars.

Rather, we would want to avoid borrowing money before retirement. The more you owe, the more difficult it is to survive with savings and pension, which is only a small portion of your regular income before retirement.

Debts will also have a major impact on your emotional well-being. Don’t stress yourself about taking debts to sustain a lifestyle. It’s rather better to spend your time without any kind of financial stress.

Buy Health Insurance

Buying health insurance is also good for your financial health after retirement. The elderly are especially recommended to invest in health insurance as illnesses and comorbidities persist at a higher rate among this group.

Moreover, with an increased cost of healthcare, paying for health bills could be a serious burden, especially after retirement when you, unfortunately, don’t have any financial back in the form of insurance.

You may check with your children for family insurance or consider investing in a health insurance policy for covers in treatments, the cost of which could be a huge burden on your shoulders without any regular income.

Moreover, if any of your children have invested in a health insurance scheme, most covers involve benefits for parents as well. So, buying a health insurance policy or having an indirect scheme could be helpful for you.

Investing in health insurance also makes more sense in the future with the growing incidence of Covid-19 cases and the comorbidities that develop in the aftermath of this deadly disease. So, invest in a health insurance scheme.

Travel and Experience

When you retire, companionship becomes your biggest concern. You’re out of work and may not be able to connect with colleagues so often. But, you should not sit idle at home. Isolating yourself after retirement could be seriously detrimental to your mental condition. Rather, it’s advised that you should apportion some savings for traveling and exploring the world.

Your golden years are those following your retirement. You must enlighten yourself with multiple experiences. You can try everything from cooking, painting, music to anything. Now, you’ve all the time to write something you’ve always wanted to.

Be Active

You can work on your emotional health by reading books and assisting your children or friends with personal finance management. It’s always good to be active if you want to be emotionally stable and independent.