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Old age is often considered a disadvantage, but if you are a senior citizen in India you are entitled to several financial benefits. These benefits are aimed at providing financial security and easing the burden of expenses during your retirement years. However, you must be careful while availing online or door-step services and must verify the authenticity of the financial institution and the person before handing over any cash or documents for banking services.
Here are some key financial benefits of being a senior citizen in India:
Higher Interest Rates on Deposits
Senior citizens are entitled to higher interest rates on fixed deposits, recurring deposits, and savings accounts than regular citizens. These higher rates help them earn a better return on their savings and provide them with an additional source of income during their retirement years.
Door-step Banking Facilities
As per the RBI guidelines, banks are liable to provide pick up of cash or cheque and drop of demand drafts to senior citizens and differently-abled persons. The apex bank has laid down rules to provide basic facilities such as KYC, cash deposit and withdrawals etc. to senior citizens aged 70 or more. You can just dial a customer care number and the bank will assist you with door-step banking facilities.
Also Read: Not getting good returns? 5 ways to increase your investment performance
Tax Benefits
Senior citizens are entitled to various tax benefits, including higher tax exemptions and lower tax rates. The tax exemption limit for senior citizens is higher than that for regular citizens, and they can claim deductions for expenses such as medical bills, health insurance premiums, and investment in certain schemes.
Pension Schemes
Several pension schemes are available exclusively for senior citizens in India, such as the Senior Citizen Savings Scheme (SCSS), National Pension System (NPS) and Pradhan Mantri Vaya Vandana Yojana (PMVVY). These schemes provide regular income to senior citizens and help them meet their daily expenses.
Adhil Shetty, CEO, Bankbazaar.com, says, “NPS is one of the best ways to save for retirement. It collects contributions from workers aged between 18 and 70 years. The contributions also get tax deductions.”
Health Insurance
Senior citizens are more prone to illnesses and require regular medical attention. Several health insurance schemes are available that cater specifically to the needs of senior citizens. These schemes offer comprehensive coverage and provide financial assistance during medical emergencies.
Public Transport
Several state transport authorities offer concessionary rates for senior citizens traveling by bus or train. This concession can be up to 50% of the regular fare, helping senior citizens save money on transportation costs.
Exemption from Property Tax
Some states in India offer property tax exemptions for senior citizens. This exemption can be of the regular property tax, reducing the financial burden on senior citizens who own property.
In conclusion, being a senior citizen in India comes with more than 7 financial benefits that help provide financial security and ease the burden of expenses during retirement. These benefits include higher interest rates on deposits, tax benefits, pension schemes, health insurance, concessionary rates on public transport, reverse mortgage schemes, and property tax exemptions. Senior citizens should take advantage of these benefits to ensure a financially stable retirement.
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