Many of us use our pension funds to support ourselves during our senior years
Upon retiring, our regular monthly salaries change, and many people start living on their pensions. Therefore, a proper pension is important: it is crucial to understand how it is calculated and allocated, and what rights you have after retirement, so that you can plan accordingly.
What you should know about your pension:
- Pension: First it is important to verify that every senior receives the pension he or she is entitled to after retirement. A pension is calculated according to the number of years a person worked, age, gender, the level of his or her salary, and how much money was deposited into the pension fund. It is recommended you consult with a pension consultant to make sure you are receiving the pension that you are entitled to. In addition to the pension fund, many people save money in additional ways such as keren hishtalmout (tax free saving plan), mutual funds and ‘’manager insurance.’’ It is important to find out whether the senior has one or more of these saving plans.
- Insurance: Many of us have taken out various insurance policies; the most relevant ones for seniors are health and life insurance policies. A trustworthy relative or friend should check what insurance the senior has, so that he or she can help with the management and also make sure that the senior has not taken out inappropriate, overpriced or unnecessary insurance policies.
- Ongoing payments: These include rent, cellphone, cable TV, electricity, and more. There should be supervision over these payments, to make sure the senior is not paying more than he or she should, and no one is taking advantage and overcharging them. Seniors should be instructed not to enter into transactions with unknown people or give their credit card details through the internet or to strangers on the phone.
- Writing a will: Though this is a sensitive subject, one of the most important things that need to be dealt with in old age is writing a will. A will ensures that assets and property will be distributed after death according to personal wishes. Even if the money is going to be given to legal heirs, it is best to write a will, so that the state cannot put its hands on the money and delay the inheritance.
It is important that seniors take care of financial matters in an uninterrupted way.
Financial matters involving seniors can be complicated and stressful, but there is no choice but to review finances and supervise so that the senior is not taken advantage of. This way the senior’s interests, as well as his or her financial resources and quality of life, are maintained.