Money Wrinkles Must Not Mar Your Old Age

The assets of the 70-plus are at risk from both within and outside the family. Outright fraud, misselling and emotional wrangling away of assets are just some of the dangers out there

- Monika Halan

A bizarre story of an old woman handing over property worth several thousand crores for a few lakhs made the front pages last week. Reports said a conman sweet-talked his way into getting control of the three-acre Delhi Riding Club property in the heart of New Delhi for just ₹40 lakh and a promise of lifelong care. Such cons are playing out across millions of Indian homes, albeit at varying scales. The old typically are asset rich and cash poor. They are usually lonely, especially after the loss of a spouse, and have difficult relations with siblings and children. A desire to prove their independence, mixed with fear and ignorance, leads them to make catastrophic money decisions.

An Agewell Foundation study titled Financial Status of Older People in India found that half the assets of seniors surveyed in urban areas were held in property, making them asset rich and cash poor, given that the yields on real estate are below 3%. The study also found almost 70% of high-net-worth seniors involved in family feuds. Another one-fifth were suffering ill health due to stress induced by legal matters. With about 45% of their annual income going towards medical costs, nearly 80% of the seniors had concerns about future financial needs.