In most cases people 50+ are excluded from government and other formal institutions, mainly in the form of retirement. Retirement is usually associated with assumed decrease of performance among elderly. Of course certain aspect of elderly performance decrease during their late age; loss of memory, loss of hearing, decrease of vision, getting weaker, less of energy, exposure for different age related diseases, and overall decrease in functional ability.
But remaining active is very important for elderly due to its physical, psychological, economic and health benefits. That is why most of elderly want to remain active in the work environment.
But Elderlies have certain capabilities which they develop through ages like wisdom, patience, problem solving and other experience related skills. Such potential of elderly needs to be exploited.
Performance of the elderly in private institutions at their old age can proof their potential. In private institutions and self-owned businesses service years of elderly is not limited, they can work with whatever capacity.
Financial service for elderly should consider these reality of the elderly, and it should consider ways of compensating decrease of performance.
One way of providing suitable financial service for elderly is by promoting Youth –elderly partnership. Such partnership/joint work will compensate the capability lose among elderly and facilitate possibility to use their late age potential. But such partnership will not occur in competitive environment, due to fear of dependency, youth will not be attracted to such partnership. But bringing incentive to such partnership will promote it. In addition to
Promoting such partnership to help them create private businesses will be more successful. Financial services like; loan, interest, and savings should set incentives for such partnership.
- Loan should be accessed at lower interest rate
- Investment should be incentivized
- Saving should generate higher interest
Such incentives will attract youth to such partnership. In such elderly will access financial services, remain active, manages it effectively, and benefits from the profits.
The level of incentive may vary depending on the number or percent of elderly in the partnership.
But control mechanisms should be in place to insure elderlies are actually benefiting from the partnership service.