Old Age Pensioners (OAPs)

Post 110 Chasing after inflation

As a pensioner myself, I have a feeling that with inflation unchecked, ordinary Old Age Pensioners (OAPs) are set to fall into the poverty trap. This is true in real life for those OAPs who live longer. With their pensions almost at a fixed-rate that always lag behind inflation, OAPs who are without other sources of income or savings are at risk of poverty. The longer the OAPs live, the more resources they need to have to cater for more medical fees.

To live longer is a blessing when there is financial freedom. For those who have no such privilege, it becomes a huge financial burden. They will be pushed below the poverty line. Thus, it is always advisable for young people to start saving as soon as they get their first pay. The multiplier effect of savings after 30 to 40 years gives one very rich dividends to enjoy one’s golden years. It is a pity that many people in retirement have to look hard for ways to enhance their income just to survive.

Many countries are facing bankruptcy because of corruption, poor governance and incompetent leaders. This is woe upon the working classes who have to struggle to live. After paying for the house installments or rents, there is nothing much left to pay for the most expensive electricity and gas bills, besides the medical fees and food bills.

With good financial planning initiated early, one can become an OAP with peace of mind in the golden years.

20 September 2011