3 Ways To Help Your Parents Prepare For Retirement

Most people stride into their retirement years with the fear of outliving their retirement savings. For children of retiring parents, it is important to help them be financially prepared, to ensure a worry-free retirement. A good way start, is to assess their current situation and analyse their investments, such as provident funds, fixed deposit, stocks, mutual funds or any other investment options.

Read along to know about other measures to ensure that your parents can have a joyous and secure retirement.

Contribute to household expenditure

One of the easiest ways in which you can help your parents, is by sharing household expenses. As per a recent survey, 44% of retirees said that they have insufficient funds because they continued to financially support their adult children. Therefore, if you live with your parents, one way in which you can help them preserve their wealth, is by taking up financial responsibility of the household.

Diversify their investment portfolio

One of the main reasons why people have insufficient funds for retirement, is because they rely purely on savings that don’t have the ability to offer inflation-beating returns. This makes investing extremely important. To help them address this area of their finances, encourage your parents to invest in secure options like fixed deposits, or invest on their behalf. As this vehicle isn’t market linked, it’s perfect for senior citizens. It preserves their wealth and yields substantial returns.

For example, Bajaj Finance Fixed Deposit offers attractive FD interest rates amounting to 8.70% for senior citizens when they invest for 36 months at least, and choose to receive interest at maturity. To understand how this will benefit their retirement corpus, take a look at the following table. 

As you’ll notice, the longer tenor you choose, the higher are the returns you can earn, owing to the power of compounding. Optionally, by opting for periodic payouts instead of payouts at maturity, you can set up a stream of regular income for your parents that will help them meet their monthly expenses and pursue their hobbies. You can decide on the particulars of your investment once you use the handy fixed deposit calculator.

Invest in health cover for your parents

Healthcare is a big expense for senior citizens and with the cost of treatments rising exponentially year after year, not only is it important to ensure that your parents have a policy, but it’s also necessary to check if the coverage is sufficient. Look for comprehensive cover that offers treatment for ailments that they are susceptible to, a strong cashless network and minimal exclusions based on age. In case you are purchasing insurance for your parents, you can also claim a tax deduction based on this.

Now that you know how to ensure that your parents have a happy, carefree retired life, try to implement these steps at the earliest. You can get started by helping them invest in a Bajaj Finance online FD today. Simply fill a form and a Bajaj Finance executive will get in touch with you and guide you on how you can invest and grow your savings easily.  

This story has not been edited by News Nation staff and is published from a syndicated feed.