Having spent a lifetime adding value to different organisations ( instead of one, and getting a pension/gratuity and other terminal benefits) and being aware of the complete lack of any social security in my country for the old, I am reasonably qualified to write about this.
First, this might sound foolish or stupid to those elders who get a pension, have been corrupt, etc. for this is about regular middle class senior citizens, who for innumerable reasons could not have a pensionable job or great terminal benefits.
It is not as though senior citizens today have not seen crisis. Many have seen
1. Energy crisis/emergency/war in the 70's
2. Great Indian Recession 1991- Hyderabad Allwyn was privatised soon after this
3. East Asian Crisis 1997- I remember my losing a job with a MNC due to this and the boss saying the directors had decided to exit Asia!
4. The sub-prime crisis of 2008 ( am sure 9/11 in 2001 had its impact on India also).
Not to mention short bursts of uncertainty with factors like devaluation which were many in the last 3-4 decades
While these situations in life might have provided a more balanced perspective to life, expenditure and savings, the impact in absolute terms was also substantial.
Today, the diversified portfolio ( to reduce risk ) of stocks, fixed deposits, housing or real estate paint a rather gloomy picture for the senior citizens. Yes, Gold has gone up, however, asking aunty to sell the gold is not possible until you have no food to eat.
The investments in stock have not only eroded in value, it does not appear like dividends will be coming by in double digit percentages of investment. How did I forget dividend is paid on the paid up value and not the price I paid for the stock? :)
Returns on fixed deposits have reduced substantially. On an investment of Rs.15 lakhs using decades of saving for old age the returns have fallen from Rs.9000/- per month a year ago to Rs.4350 per month. By the way the PMVV scheme is closed as of 31st of march and even though I could fill the form online, could not make the transfer thanks to the pandemic working hours/days.
Returns on real estate have always hovered around 4-5% per annum, however, when tenants tell you that based on the governments suggestion, they will take a three month waiver and renegotiate at the end it all, it is a big blow to the senior subject.
.
Governments all over the world have announced huge sums of money to be paid to companies and banks to get over the crisis. The last time it happened senior executives/owners of such recipient companies not only took their salaries but huge incentives as well, running into millions. Thanks to the deep nexus between politicians and the corporate world, no additional long term commitment towards healthcare has been announced by any government and senior subjects, less said the better. Governments are hoping many of them will not remain after this crisis!
There is no option for surviving seniors to try to get back into the job market. This will only create reduction in rates, animosity for the seniors and generational conflicts at the workplace. One friend suggested yet another option, cut costs! This might be possible for some, however for the vast majority who have spent a lifetime paying back a variety of loans apart from enduring periods of unemployment this is a tough call.
Like everything in life, this too shall pass, however it should hopefully happen during the lifetime of the senior subject ! In the meanwhile, Eat, Pray, and Love !
The title is corny and laboured, Can you suggest a cleaner one?
First, this might sound foolish or stupid to those elders who get a pension, have been corrupt, etc. for this is about regular middle class senior citizens, who for innumerable reasons could not have a pensionable job or great terminal benefits.
It is not as though senior citizens today have not seen crisis. Many have seen
1. Energy crisis/emergency/war in the 70's
2. Great Indian Recession 1991- Hyderabad Allwyn was privatised soon after this
3. East Asian Crisis 1997- I remember my losing a job with a MNC due to this and the boss saying the directors had decided to exit Asia!
4. The sub-prime crisis of 2008 ( am sure 9/11 in 2001 had its impact on India also).
Not to mention short bursts of uncertainty with factors like devaluation which were many in the last 3-4 decades
While these situations in life might have provided a more balanced perspective to life, expenditure and savings, the impact in absolute terms was also substantial.
Today, the diversified portfolio ( to reduce risk ) of stocks, fixed deposits, housing or real estate paint a rather gloomy picture for the senior citizens. Yes, Gold has gone up, however, asking aunty to sell the gold is not possible until you have no food to eat.
The investments in stock have not only eroded in value, it does not appear like dividends will be coming by in double digit percentages of investment. How did I forget dividend is paid on the paid up value and not the price I paid for the stock? :)
Returns on fixed deposits have reduced substantially. On an investment of Rs.15 lakhs using decades of saving for old age the returns have fallen from Rs.9000/- per month a year ago to Rs.4350 per month. By the way the PMVV scheme is closed as of 31st of march and even though I could fill the form online, could not make the transfer thanks to the pandemic working hours/days.
Returns on real estate have always hovered around 4-5% per annum, however, when tenants tell you that based on the governments suggestion, they will take a three month waiver and renegotiate at the end it all, it is a big blow to the senior subject.
.
Governments all over the world have announced huge sums of money to be paid to companies and banks to get over the crisis. The last time it happened senior executives/owners of such recipient companies not only took their salaries but huge incentives as well, running into millions. Thanks to the deep nexus between politicians and the corporate world, no additional long term commitment towards healthcare has been announced by any government and senior subjects, less said the better. Governments are hoping many of them will not remain after this crisis!
There is no option for surviving seniors to try to get back into the job market. This will only create reduction in rates, animosity for the seniors and generational conflicts at the workplace. One friend suggested yet another option, cut costs! This might be possible for some, however for the vast majority who have spent a lifetime paying back a variety of loans apart from enduring periods of unemployment this is a tough call.
Like everything in life, this too shall pass, however it should hopefully happen during the lifetime of the senior subject ! In the meanwhile, Eat, Pray, and Love !
The title is corny and laboured, Can you suggest a cleaner one?
