Seventy-two-year-old Vasantha Amma lost her husband during the lockdown imposed in India. Though she had four sons, none of them were there to perform the cremation of her husband. All her children have settled abroad in the US. Today, Vasantha Amma lives all alone with an insecure life with no financial backing for her. This is not just the case with Vasantha Amma of Chennai, but most Indian parents spend a lifetime investing their salaries for their children saving for their future and higher education. An entire lifetime passes by in planning for their children until they are married off. But not a little thought goes into investing for their own retirement. Most Indian elderlies suffer in loneliness as their children are faraway settled abroad. Planning for retirement is clearly the most important but in India most of the people don’t know of schemes meant for them.
Senior citizens or retirees should have a fund that gives them both revenue and liquidity. Many citizens have a guaranteed pension or a savings scheme that takes care of their regular wages, but their ability to cope with financial emergencies in the near run is weakened when savings are related to long-term goods. Since senior citizens do not receive money, it is critical that the current corpus be allocated in a manner that has the versatility to redemption in the short term.
What is of utmost importance is having a decent medical insurance policy is vital, not just to pay for the inevitable medical expenses that may happen, but the Mediclaim deduction will help to save taxes.”
Putting money into a PPF account makes sense, since one can put up to 1.5 lakhs every year, so regular contributions from excess funds that can be handled can be made during the year.’ The net tax savings, plus the higher interest gained, make PPF very appealing.
Indian government provides a variety of incentives to senior citizens (60-80 years of age) and really senior citizens (over 80 years of age) in terms of income tax (I-T).
Pradhan Mantri Vaya Vandana Scheme
This is one of the most popular senior citizen pension schemes in India. This Prime Minister Senior Citizen Scheme, designed for senior citizens over the age of 60, has a ten-year policy term. The pensioner has the option of receiving payments weekly, quarterly, semi-annually, or annually. This scheme allows you to obtain an annual interest rate of 8%. The minimum and maximum pension caps are Rs. 3,000 and 10,000 per month, respectively.
National Programme for the Health Care of Elderly (NPHCE)
This scheme, which was implemented in 2010, focuses on both preventive and promotional care in order to maintain overall health. This program was created to address the health problems that seniors face. Through the State Health Society, district-level goals include delivering dedicated health facilities in district hospitals, community health centers (CHC), primary health centers (PHC), and sub-centres (SC). These services may be provided for free or at a significant discount.
Rashtriya Vayoshri Yojana
This scheme provides physical aids and assisted-living devices for older adults above 60 years of age that belong to the BPL (below the poverty line) category. So, if senior citizens wish to avail this, then they must have a BPL card. This is a Central Sector Scheme and is entirely funded by the Central Government.
Varishta Pension Bima Yojana
The Ministry of Finance has announced a pension scheme for senior people over the age of 60. This scheme is run by the Life Insurance Corporation of India. This policy does not necessitate any medical examinations. It provides an assured pension with a guaranteed interest rate of 8% per annum for up to ten years – you can choose between monthly, weekly, half-annual, and yearly pensions, depending on how you choose to receive it.
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