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Financial tips for Senior Citizens

After retirement every individual has plans of travelling and doing activities they couldn’t do during their working years. To create all these memories, a proper financial plan should be charted out. Recent studies have shown that more than 15 million seniors (age 65+) have monetary insecurity. Financial plans may seem complex and a lot of work, so to simplify things here are some basic steps in building your financial plan after retirement,

  • Insurance

Insure yourself adequately, health insurances, life insurances are a must. Unforeseen circumstances like accidents can be emotionally and financially draining. If you do not have insurance, your entire life savings could be on the line. Several age-related ailments can catch up as you grow old. It is thus essential to have adequate health insurance so that you do not get caught off-guard. Health insurance is on the rise; hence, it is advisable to plan well in advance.

  • Annual Budget Preparation

You can start by having a basic budget that covers all the aspects of your income and expenses. Finance for seniors budget starts with listing down all the possible income sources. Include everything from returns on investments to your pension, if any. When listing the expenses, consider them annually. While making a list of monthly expenses is the easiest thing to do, remember there will be annual and semi-annual expenditures. These include your taxes and insurance policies. A better way to deal with it is to break down the yearly expenses into monthly amounts and have them in your budget for the month.

  • Create Saving Goals

The option of savings can be considered after the annual budget is created. Certain goals can be implemented which will in turn save money even for the low income senior citizens. Make sure your savings goals align with things you are excited about doing in the near future. Do not go by what your financial advisor, friends, or family want you to pursue. Finding your purpose will keep you motivated and drive you towards savings.

The conclusion is that charting out a financial plan is not difficult if you plan well. Proper planning will help you be ready for unforeseen circumstances and expenditures that may come up all of a sudden. Senior citizens can get more tips for financial planning by attending free seminars, meetings etc. A proper financial planning for seniors will ensure they live a stress free life ahead.