SECRET ROAD TO FINANCIAL DIGNITY

Dignity is something most retirees want once their active work life comes to an end and it is closely tied to the individual’s financial well-being

- NILANJAN DEY,

Ask people to state in a single word the one thing they should all have after retirement, and you can bet your right arm that their answer would be ‘dignity’. In case you came up with the answer ‘health’, you may rest assured that the previous clear-cut answer already embraces the concept of good health. So, yes, a dignified life is what all people actually want after retirement when their regular income-generation activities come to a halt. But, as it so frequently happens, debilitating issues often come up in all shapes and sizes, each gnawing a bit off that ultimate goal.

If dignity is indeed the average individual’s top priority, nothing can demonstrate it more than financial dignity. The latter depends on an array of factors, namely: savings, investments, risk appetite, asset allocation, time horizon, and so on. But to keep it short and simple, financial dignity will be a factor of one’s surplus and the manner it is put to use. Surplus, if used unwisely would run out soon, especially if it generates low returns. This has been proved true across timelines.

A new financial year is just the right time to view this from several angles, both from the perspective of savings and investment. I will take up a bit of both though, and seek to balance it all out with a few practical to-dos. So here’s a word for the discerning reader for the financial year 2024-25.

Perspective of a Saver