A father strives hard to give their offspring the best, irrespective of the circumstances. He toils hard to provide top-notch education and a comfortable life to his child. The summer camps, cricket lessons, dance classes and the best of tuition is what he has provided by pouring in his hard-earned money, without thinking twice.
Often, while securing our future, he is left pinching pennies in his sunset years. This Father’s Day provides you with a perfect opportunity to give something back to your father. With many investment options like fixed deposit for senior citizens, you can create a corpus for your father so that he can enjoy his golden years stress-free. At the same time, senior citizen FDs earn a greater tax exemption as against normal FDs.
From rebuilding their corpus to reworking their financial portfolio, your small steps can provide a happy life and peace of mind to your father. Here are three financial steps that you should take to secure his financial future:
1. Invest in fixed deposits
Fixed Deposits are one of the safest investment avenues to freeze savings and build a substantial corpus for your father. It can help you grow your investment at a fixed rate, also offering stability and safety of the principal amount. One of the biggest advantages of investing in an FD is that you are promised assured returns on maturity with greater flexibility and high stability.
With NBFCs Fixed Deposit, you can get attractive FD interest rates and choose a tenor between 12 to 60 months, depending upon the financial needs of your father. Moreover, senior citizens are entitled to receive more benefits as they are eligible for an additional rate of interest above the normal FD interest rates. You can find out more about Senior Citizen Fixed Deposits before you start planning a corpus for your father.
In addition to high returns and stability on your investment, you are also entitled for tax deductions under Section 80C of The Income Tax Act by investing in an FD. So, start building a retirement fund for your father by investing as low as Rs.25,000 in to FDs of multiple tenors. You can use the online FD Calculator to evaluate your returns in advance and invest appropriately to meet all financial needs of your father.
Buy a health insurance plan
Health is probably the first thing that deserts a person with increasing age. The rising cost of healthcare facilities could be the biggest threat to your father’s finances during the autumn of his life. His accumulated savings can drain out quickly without adequate coverage against hefty medical expenses.
Hence, buying a health insurance plan for your father is the best way to protect his finances from getting drained quickly. You can either buy a separate health insurance policy for your father or include him in your family floater plan. There are various health insurance plans meant especially for senior citizens like him. The premium may be on the higher side but they cover a range of ailments.
Apart from providing financial security against hospitalization expenses, health insurance premiums are also eligible for tax deductions under Section 80D of The IT Act. So, paying regular health insurance premium for your father could be another important financial gift you can give your father this Father’s Day.
2. Gift a pension plan
A pension plan offered by insurance companies can be the best gift to your father on this Father’s Day. It could be an important financial step to ensure your father never feels monetary pressure even after his retirement. A pension plan can be bought anytime irrespective of the years left for retirement. In fact, few companies even allow late entry into their retirement plans till the age of 65.
Once the policy period is over, a regular income is provided to the policyholdertionally, the policy holder can choose to withdraw one-third of the lump sum to meet his financial needs or invest it somewhere else to get even high returns.
Pension plans are available as both traditional plans and market-linked plans. Apart from securing a regular stream of finances for your retired father, most of the pension plans also provide tax benefits.
These are surely among the safest of options to plan a retirement for your father and gift him a bright financial future this Father’s Day. Retirement planning for your father becomes extremely important to make sure he enjoys the golden years of his life, stress-free.
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