If you live well, you will die old. Just like businesses have perpetual financial plans for sustenance, your lifespan requires a plan too. Your financial goals must include health care planning beyond basic insurance. A new NITI Aayog report on elderly care outlines structural shifts in India’s healthcare landscape due to demography. It highlights situations you could face when you are old if you do not plan today.
The report highlights that India’s care services market would grow three times to $72.3 billion in 2030 from $30 bn in 2023. While the report talks about policy imperatives for elderly care and the role of various stakeholders in detail, it has significant personal finance implications.
If you are young today, you have an edge over those who are already old. You can thank the data explosion for that. It allows you to create some meaningful intelligence and helps you make smart choices. The old today were not that lucky when they were young. They only had older people in the family sharing anecdotes about old age care. Most parents depended on children for elderly care.
Your health insurance gives you significant benefits for hospitalisation if you pay a higher premium. However, health insurance is not a plan for old age. It does not include the daily non-medical long-term care that you could need due to conditions like dementia, mobility assistance and palliative care.
In addition to a comprehensive health insurance package, you should create a fund that is dedicated to long-term care or an assisted living fund. It should cover out-of-pocket caregiving expenses for assisted living. You may require support from healthcare professionals or may have to live in an assisted living facility.
The state of healthcare professionals is likely to move from unorganised help to standardised caregiving with the help of trained professionals. You may think your domestic help can take care of you or older people in your home. However, if the government mandates trained professionals for caregiving, that could mean you will have to prepare to pay for that cost in the future. A trained professional will not be cheap. But rules may ensure that they are professionals who can do whatever is needed to give appropriate care at home. For the money you spend, you could get better quality service and safety standards.
Among other things, the report recommends creating a care leave policy within companies. That should allow you to care for older people in the home without losing employment or pay. Women are at the receiving end. The NITI Aayog survey found that informal family caregiving falls disproportionately on women, leading to career interruptions. It also reduces income and retirement savings.
An elderly person at home who needs care means a setback to your retirement plans, as it takes an effort to recoup later. It is also an opportunity lost for your money from a power-of-compounding standpoint. The proposed leave policy will provide relief to those in need and is a very timely idea.
If you are a small business owner and looking for new ideas, the policy recommendations include financial incentives for care-focused enterprises with benefits under schemes like MUDRA and Startup India. Preference would be given to niche services like memory care, palliative support, and adult day-care centres. It is an opportunity for entrepreneurs and investors to invest in a high-growth sector that is supported by the government’s priority lending and relatively low entry barriers.
Over the next few decades, rich economies will age quickly. The demand for healthcare workers is likely to be significant. For those of you seeking new career opportunities overseas, the new policy proposes standardised procedures and certifications in line with international standards.