Personal Finance Issues After Retirement

By: Ajeet Khurana

The costs of living increase even as we start to age. Expenses keep on increasing even as we age. Old age merely brings about a rise in a number of expenses. Visits to the doctor have to be made. Medicines need to be bought. And this is just the beginning. However, even as the cost of living keeps rising, the income with which these bills can be paid remains stagnant. Post-retirement, one has to be dependent on one's pension and on the monies that accrue from the various investments that continue to bring in returns. Given these sources of income, it is bound to be difficult to meet the expenses of daily life.

However, with a little bit of research and some application, one can use the mechanisms of personal finance to live like we did before retiring. For starters, let us take the case of bank accounts. Now, there are various kinds of bank accounts that people can apply for. But which bank account would be idea for someone who is retiring? Ideally, one should be looking at a bank account that offers a high rate of interest. High interest savings accounts are available all over the place. Joint bank accounts are sometimes a great choice. Elderly couples often pool their monies together and start a joint account, thus, earning higher interest amounts on a regular basis. Just check with the bank that is nearest to you. Moreover, senior citizens are eligible for some other offers that cater specifically to their needs. So anyone who falls into this age group must find out about deals like this too.

Credit cards are often the rescuers of elderly folks. After retirement, a lot of people find it difficult to continue living as they did earlier. Thus, many end up running up their credit card debt as they pay for various recurring expenses, with medicines topping the list. Now, credit card debt cannot be run away from. It must be settled in some way. However, senior citizens can approach their credit card providers and try to negotiate a reduction in debt. Many providers are willing to comply with such requests.

Of course, sometimes cash advances and credit card payments are not sufficient. Turning to loans could be a costly affair for people who are not earning regular incomes. Things are simpler for people who own property for the secured variety is cheaper. However, in the world of today, even unsecured loans can be quite cheap.

Retirement
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