Did you know that around 16% of the population worldwide suffer from disabilities and find it hard to get employment? People with disabilities are twice as likely to be unbanked, and this is why disability financial planning becomes important.
With proper planning, it can be ensured that people with disabilities can live a comfortable and independent life. Check out this blog to discover some of the best financial strategies for individuals with disabilities!
Why are special needs financial strategies important?
We have already discussed the financial implications of having disabilities in our introduction. People often face hindrances due to their disabilities, which may disrupt their quality of life, and this is where financial assistance for individuals with disabilities comes in.
By following proper financial guidance, people with disabilities can achieve a better quality of life and financial independence. Additionally, people with disabilities may often face income variability because of their inconsistent work hours or difficulty in finding work.
However, with carefully crafted financial plans, they can ensure income stability. Last but not least, the Indian government offers disability tax benefits, and there is also a provision for government assistance for disabilities, which can help people reduce their financial burdens.
This is why financial planning is important because people not only gain awareness but can also work on long-term planning so that they can lead a life of comfort without having to depend on anyone.
Financial planning strategies
It is time to focus on the various inclusive financial planning strategies that can be a game changer for you!
- Disability tax benefits
In India, you have the provision to claim tax deductions under Sections 80U and 80DD. While Section 80U provides tax deductions for individual taxpayers with disabilities, Section 80DD provides tax benefits to the family members of the individual with disabilities.
To claim these tax benefits, all you have to do is furnish your medical certificates. The amount of deduction varies based on the percentage of the disability. This is important for disability income planning.
Also read: Overview of section 80C deduction and its sub-sections in income tax
- Social Security disability benefits
Under social security, you can opt-in for the Indira Gandhi National Disability Pension Scheme(IGNDPS), which provides aid to people with disabilities. However, this scheme is only applicable if you are below the poverty line or have 80%/multiple disabilities. In addition, only people between the ages of 19 and 79 are eligible to be a part of this scheme.
Under this scheme, you can obtain Rs. 300 from the central government and Rs. 200 from the state government. The pension is credited in cash on the 15th of every month. You can consider this scheme similar to the supplemental security income (SSI) planning schemes provided by the US government.
- Disability savings plan
While multiple provisions can help ease the financial burden, people with disabilities can still face major financial hurdles without a solid savings plan.
You can avail yourself of the various insurance schemes that cover your medical and education expenses. These disability insurance and planning schemes will always come in handy in emergency and unexpected scenarios.
Additionally, you can also specifically select pension plans that are tailored for people experiencing disabilities. This way, you will also get tax relief and a steady source of income on a timely basis.
Remember to calculate your income and living expenses carefully and always aim to save some funds for the future. Push yourself to fix your monthly budget and track your day-to-day expenses.
- Disability employment financial strategies
If you are a person with a disability, you might know the challenges of finding work. Often, these disabilities leave no page unturned in tainting your profile. However, there are ways in which you can overcome them.
First, start with evaluating the kind of work you can do comfortably without the interference of your disability. Invest time and money in getting education and vocational training. Luckily, with the advent of the internet, you do not even have to travel! You can upgrade your skill sets right from the comfort of your home.
Once you have successfully obtained the necessary skills, apply for the position! In this way, although you are investing money and time, you are going to receive amazing returns in terms of employment and a stable job.
Also read: Closing the divide: Strategies to overcome gender wealth disparity
Conclusion
By taking a few extra steps, you can ensure that you and your family can lead a tension-free life. Nowadays, easily accessible financial advice has turned out to be a lifesaver for people with disabilities.
In addition, disability advocacy and financial support are strongly led by both the central and state governments to uplift people with disabilities and ensure that they are financially independent! All you have to do is tap in and take advantage of the facilities. Voila! Now, all you have to do is follow them diligently! Good luck. To learn more about it, follow StockGro.
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