Retirement Planning

A case study elderly couple

As we were returning from Goa, we happened to share our bench with an elderly couple who had just crossed seventy. Husband has retired from senior level position in Central Government. The wife has retired as steno typist from one of the respected names in private sector after forty years long service.

While sharing general topics, inadvertently we touched my favourite topic of retirement planning.

Here are some of the gems that I picked up from uncle:

1) Do not dream on behalf of your children. They have their own dreams and aspirations. Parent’s job is only to fund education.

2) The generation to generation view of life changes drastically.  Learn to take it cool.

3) Do not over invest in real estate. The children are too busy to maintain property which is outside their place of work. This couple in their seventies visits Goa every month to maintain their second home.

4) Land purchased by the couple has been encroached with only a third portion of it in their possession. Children do not have inclination to fight it out in court.  Children are highly educated and well placed in life. With their spouses also working, no one is interested in assets owned by parents.

5) Cash invested in some form which gives regular interest or is easily encashable is most important than anything else. The uncle gets monthly pension of Rs 35,000 and yet even one monthly pension is delayed, they get jitters.

6) Major investments of family are in real estate and Gold. Both they are not able to sell.

7) Mediclaim was ignored when the health was perfect. Now both partners had to undergo sugeries where a total of Rs 8 Lacs has gone from savings.

His parting message

My son, Cash is very important. Invest in asset which gives you regular income and easy liquidity. Also take very good care of your health. Good health plus Good Cash is Happy Retirement.

Lots of learning from this lovely couple.