There are the different phases of life and your needs may differ, depending upon, which stage of life you are at. Below are the four major financial fears that everyone comes across:
Fear 1: What if I cannot work till the age of 60?
This is one of the biggest fears that one has in life. This is the fear wherein people think of what will happen if due to some accident, they get disabled and won’t be able to work further? This is the fear or you can also call it a financial risk in life, wherein you may face an income loss due to disability. The disability might be in any sense. It may be a temporary disability or a permanent one. Though in the case of temporary disability, you can resume your work in the future, in case of permanent disability, the same won’t be possible. Even if we consider that you can resume work in the future in case of temporary disability, the time when you can resume your work is unknown. The temporary disability can be overcome as it is temporary in nature. However, the main problem arises when it is a permanent disability. Although, one cannot make up for the physical loss that might have happened. However, the financial loss can be compensated by taking the right financial decision.
Fear 2: What if I cannot live up to the age of 60?
The second financial fear in life is that what if one is not able to live up to the age of 60. As we all know, life is unpredictable and though everyone tries to predict it, they fail miserably. So, you can’t guarantee what is going to happen in your life and neither you can change what has already happened. Hence, the only thing that remains in our hands is the present and whatever decisions we take in our present, impacts our future. Therefore, with this fear, people may think what if they die before the age of 60? This situation has shattered people’s lives not just emotionally but also financially. Definitely this situation is undesirable. Nevertheless, it is unavoidable. Besides, it is not possible to compensate for the emotional loss but the financial loss can be compensated in a well-planned manner.
Fear 3: What if my children do not get the right foundation?
Everyone dreams and work towards providing their children with the right foundation, in order to make them capable enough to live life without depending on their parents. Often the right foundation is achieved when their children get the right education. Here, many people have the fear of whether they would be able to provide their children with the right foundation or not. Say, for instance, your child wishes to pursue his/her career in medical, which is expensive today, and if we consider inflation, then it would be expensive in the future as well. With this thought in mind, one might fear of making provisions of his child’s medical career. If you have not made any provision, then you might have to go for an education loan. Though education loan may overcome this fear but can contribute to even bigger fear that we will be discussing next. You can overcome this fear with an articulated plan in place, prepared by an expert financial planner.
Fear 4: What if I outlive my retirement corpus?
This is one of the major fears that people have these days but they ignore it casually and conveniently. Retirement is one of the major issues faced by people globally. In fact, in many developed nations, it is a different specialisation altogether. They have retirement planners, who specifically deal with issues regarding retirement. However, in our country, retirement is something, which is taken very casually. However, looking at the progression in our lifestyle, it is going to be very difficult to maintain the same lifestyle even after retirement, if not planned in advance. So, here, people may have a fear of outliving their retirement corpus.
As we know, in retirement, for most of the people either there won’t be any income or there might be income in the form of pension but may not be sufficient to maintain your lifestyle during that time. You can also overcome this fear if you take your retirement seriously and start planning for it today itself without delaying it further. The early you start; the more are the chances that you would need to save less to accumulate the required retirement corpus.