Secured earning for Senior Citizens
I raised this point on earlier occasions also. No relief seen in any budget.
I made a suggestion as follows:
There are some schemes exclusively for the benefit of Senior Citizens like Senior Citizens Savings Scheme in Post Offices and PMVVY with LIC. I do not know about any other scheme. However, these schemes are for a very limited period like 5 years and 10 years.
Senior citizens wish to lead a respectful life at that stage and not to depend on others for financial needs. The above schemes appears to be good for that purpose. The concern here is they are for limited period of 5/10 years and thereafter what? Where the Senior citizens to invest and have secured earnings?
With this point in my mind I put it our circle that Senior Citizens schemes shall be provided for life. This will enable senior citizens to receive secured income throughout their life time.
Here we need to consider one thing. Mostly the people saving in these schemes are from retired employee groups and who have paid taxes during their career. They are not getting any return for taxes paid and private sector employees get only EPFO pension, which is meagre to say the least. The senior citizens can not run from pillar to post to look for safe and secured saving schemes from time to time. If the Govt. is not protecting senior citizens with appropriate schemes their lives will become miserable and they may be tempted for short term gains etc., and lose their savings.
The request here is make senior citizen schemes for life and they deserve this kind of benefit too as the provided inputs for national building during their employment times.
I made a suggestion as follows:
There are some schemes exclusively for the benefit of Senior Citizens like Senior Citizens Savings Scheme in Post Offices and PMVVY with LIC. I do not know about any other scheme. However, these schemes are for a very limited period like 5 years and 10 years.
Senior citizens wish to lead a respectful life at that stage and not to depend on others for financial needs. The above schemes appears to be good for that purpose. The concern here is they are for limited period of 5/10 years and thereafter what? Where the Senior citizens to invest and have secured earnings?
With this point in my mind I put it our circle that Senior Citizens schemes shall be provided for life. This will enable senior citizens to receive secured income throughout their life time.
Here we need to consider one thing. Mostly the people saving in these schemes are from retired employee groups and who have paid taxes during their career. They are not getting any return for taxes paid and private sector employees get only EPFO pension, which is meagre to say the least. The senior citizens can not run from pillar to post to look for safe and secured saving schemes from time to time. If the Govt. is not protecting senior citizens with appropriate schemes their lives will become miserable and they may be tempted for short term gains etc., and lose their savings.
The request here is make senior citizen schemes for life and they deserve this kind of benefit too as the provided inputs for national building during their employment times.
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I think both SCSS and PMVVY Schemes should have 9% interest, tenure can be 10-15 Years and the amount should be increased to 25 Lakhs each. So that a couple can invest 1.00 Cr and earn around 75000/- per month.
Mar 23
While agreeing with some contentions above, I am to say the following: Taxing can be done and Sr. Citizens may not be exempted after certain limits. However, we need to keep in mind, middle class people, especially Private sector employee though paid income tax during their service period no return after retirement. Many of us are well aware how efficiently Govt. is spending the receipts. For many Govts it became a habit to offer freebies in different names and making people lazy and work lethargic. We are asking the Govt. to have a secured income from our savings only for life time instead of 5 years or 10 years. I could not see any thing wrong in this request as citizens may not die after 5 or 10 years and then where they are to go. I feel senior citizens in India deserve this benefit and that too many of them contributed for national building by payment of taxes etc., during their employment. when Govt. is offering free housing, medicare etc., for some sections of society under different schemes, why they are not offering free medicare for senior citizens who are the erstwhile tax payers. Can't they ask for some benefit, when people without any payment are getting benefits! This is a fit case for Govt. to consider certain benefits like savings schemes for life time, medicare at subsidized rate etc. Frankly speaking this will in turn reduce dependence of senior citizens on Govt. aid. Please understand, Many retired middle class senior citizens wants to live in dignity and they are interested to live on alms from Govt. Please provide secured and safe earnings to them with their savings only, to live with dignity as Indians.
Mar 20
There should be multiple schemes for senior citizens with objective of their welfare. It is suggested that NPS and PPF should take up this responsibility. After 58 year these instruments should be like annuity allowing the flexibility of withdrawals , joining and leaving any time and better returns than those provided now which should not be less than then prevailing rates of return available on these instruments. It may call for comprehensive formulation of the scheme for persons above 58 years. Perhaps, there is already thinking that NPS may be extended in such a way that benefit of return on balance amount in the fund may be same.
Mar 20
Controversial or contrarian
Why we should retire at 58. People will longer now. The retirement age should be increased. Your working years will also increase and so will your Savings planning. Just think about it. In India we think working life is over when we reach 60.
Some may argue that retiring at 58 will provide employment to the young entering the working world.
Why we should retire at 58. People will longer now. The retirement age should be increased. Your working years will also increase and so will your Savings planning. Just think about it. In India we think working life is over when we reach 60.
Some may argue that retiring at 58 will provide employment to the young entering the working world.
Mar 20
Please note that Senior Citizens Savings Scheme was started by government in 2004 to provide a regular income stream to retirees from private sector who do not get pension. The interest rate was fixed at 9%. In order to avoid misuse of this welfare scheme the interest income was made taxable and maximum amount allowed was Rs.15 Lakhs per individual. The tenure was kept as 5 years with a facility of extension for 3 years. Interest was credited at quarterly intervals. The interest rate was fixed and could be increased only and not reduced. The interest rate was increased to 9.3% in April 2015 to take care of rising prices. Unfortunately as soon as NDA government was formed some bureaucrat in finance ministry managed to reduce the interest rate to 8.3% in July 2015. We have been sending petitions to FM and PM since then to restore the interest rate to 9.3% as it is a welfare scheme and not a small savings scheme. As a result it was increased to 8.7%. A petition launched on Local Circles garnered 2746 signatures and was not submitted to government as Local Circles wanted 5000 signatures. When the new FM took charge the bureaucrats again managed to reduce the rate to 7.4%.
Mar 20
very good idea. No TDS should be made for senior citizen. In LIC Tax has been deducted from the maturity amount this year for the survival benefits paid 3 years and 6 years back which is wrong. Which tax rules says this?. they are torturing senior citizen. This is a serious matter. Finance minister should give instructions immediately to LIC for non deduction of tax for the survival benefits paid previous years especially for senior citizen.
Mar 20
