Home » News » Personal Finance»Retirement
Feb 07, 2013, 12.59 PM | Source: Moneycontrol.com

Sunset Generation– Expectations from the Budget 2013-14!

Senior citizens. A lovely word coined by the government to describe elderly people of the country. Whether they get the respect needed to be given to a “Senior” is a matter of perpetual debate.

BankBazaar.com

Senior citizens. A lovely word coined by the government to describe elderly people of the country. Whether they get the respect needed to be given to a “Senior” is a matter of perpetual debate.

What does one do after retirement? Take rest, enjoy and take care of the grandchildren. Meaning “have no expectations” Fine if there are a lot of support systems to take care of them. But with the changing dynamics of the family system, many of the senior citizens have to lead independent lives and hence their expectations from the Union Budgets too have see a growth. All the more so since a lot of the decisions have far reaching effect on their personal Finance.

The biggest differentiator between a Senior Citizen and normal one in fiscal terms is that Senior Citizens mostly have only some sources of passive income and no active income and nor are they in a position to have employment. Correspondingly their expectations too have to do with that passive income part. 

Tax on Savings income Senior citizens are not in a great position to be active participants in even low risk financial instruments. Hence most of their money is parked in Savings bank accounts The expectation from the Budget would be hike the limit of taxable interest earned from Savings accounts. Its already a worrying factor that savings bank interests are lowly as compared to inflation and to tax even that is like flogging a dead horse.

When you are old, you are old. Period The current system of treating the senior citizen category as two categories is also debatable as the basic criteria are the same for the both sets Senior and Super Senior Citizens in that they do not have active income. It is a reasonable expectation to merge both the groups and revise the exemption limit from 2.5 Lakhs to 5 lakhs or even more. Even from a purely philosophical point of view they have been GIVING all their lives, so when the sun is setting for them it’s time for the society (Government) to at least not take if they cannot give too.

Whom do you trust? When one is old and frail, Trust is the biggest factor on their mind. With the kind of complicated financial instruments in the market it is really confusing for even ordinary investors to choose right instruments. The travails of senior citizens in such a scenario is better not said. The expectation from the government in the budget would be introduce or reintroduce some Government sponsored investment avenues which can be helpful for Senior Citizens to park their money in.

How do we race with Inflation On the one hand the income graph of Senior Citizens is in a plateau or negative curve, on the other hand inflation is leaping like a race horse! Even though senior citizens have planned for passive income, many a times the income is not sufficient to keep pace with current inflation in such a scenario the expectations from the Finance Minister is to announce some special schemes which give higher income and also systems which can help reduce the cost of living for senior citizens.

We are still ready to give back The biggest challenge facing the country today is the shortage of teachers. Senior Citizens have so much of experience which can be tapped for the betterment of the education sector the expectation from the FM is to announce schemes which can motivate Senior Citizens to come back the main stream and also motivate academic institutions to harness the experiences. This could help reduce a lot of expenditure being incurred on shoring up the education sector with short term strategies.

Health The biggest worry increasing age is proportional to the risk of health issues. Health care for Senior Citizens has become excellent, yet at the same time it is increasingly is expensive. It all comes back to square one. No active income, but higher expenditure. The expectation from the FM is to increase the exemption limits on Medical Treatment. The Rs 5000 exemption for preventive health checkup if ok for people in a lower age bracket. But, for senior citizens, they have to face expenses for treatment which is very high.

All the budgets keep talking about Sun Rise sectors of business and industry and promote the concept of fuelling growth. India is on the verge of seeing a big change in the percentage of people who are becoming senior citizens in the next decade. It is imperative for the FM to focus on this Sun Set sector too and set the ball rolling for major transformations to support this set of people who have given all their to the Country.



 

BankBazaar.com is an online marketplace where you can instantly get the lowest loan rates , compare and apply online for your personal loan , home loan , car loan and credit card from India's leading banks and NBFCs.

ADS BY GOOGLE

Ask the Experts

Get your Personal Finance queries answered

  • Q

    If I put Rs 2 lakh in PPF, how much tax rebate I will get?

    A

    As per the existing guidelines and rules a person cannot deposit more than 1.5 lacs in one PPF account. However you can deposit money in the...

  • Q

    Interest rates are going to go down. And all my fixed deposits will be maturing next year. I will have to renew my fixed deposits next year at lower rate of interest. What is the way out?

    A

    Interest rates keep fluctuating due to various micro- and macro- economic factors. There is never an ideal rate of interest. In a high inter...

  • Q

    I want to buy online term life insuance plan. Which is the best one? Should I go for single premium or regular premium policy?

    A

    Single premium term insurance policies don?t make much sense. Why pay such a large amount at one go when you have the option of paying in sm...

  • Q

    I want to invest some money with at least ten years view. I dont want share market risk. Can I invest in NSC? Is there any other investment option?

    A

    NSC or National Savings Certificate is a safe investment scheme offered by the Central Government. It is an ideal option for investors with ...

  • Q

    Is it a good idea to invest in asset allocation funds? if yes, please suggest some good fund to invest money. I am 35 years old and can invest Rs 10000 per month.

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    My CA says that I have to pay tax on interest accrued on my FD of Rs 20 lakh. I have submitted form 15H in all banks. Is it necessary to pay tax in this case?

    A

    In case of interest on fixed deposits which is taxable under the head ?Income from other Sources? a taxpayer has two choices. Either you can...

  • Q

    Please suggest a good investment option of land in South India. I want to buy a land parcel of around 2 acres.

    A

    If you take a look at the South Indian real estate market, Bangalore has emerged as a clear winner. Due to the strong presence of IT/ITeS an...

  • Q

    I want to invest Rs 20000 per month. I have identified Reliance Small Cap Fund and DSPBR Micro cap fund for investment. I can hold to investments for two years. Is it a good idea to invest in these schemes? How much returns I will be getting?

    A

    If you are an aggressive investor, you can consider investing in either of the 2 funds.DSPBR Micro Cap My suggestion is that if you are inve...

  • Q

    I want to save my money for retirment Please suggest a good insurance policy

    A

    For retirement it is advisable to use multiple investment instruments and not just life insurance policies. If you have 15 years or so for r...

  • Q

    IS IT a Good time to invest in GOLD ?

    A

    Currently the outlook for gold is bearish/negative. However if you are planning for a long-term investment in gold it is ideal to invest the...

  • Q

    I have retired from my job in November. I have got Rs 48 lakh from my employers, by way of epf, gratuity and other benefits. Should i invest in senior citizen scheme of LIC? How about pension plans from LIC?

    A

    1. You can invest Post office Senior Citizen Scheme. 2. You also should invest lumpsome in MIP in post office and get monthly interest. 3. K...

  • Q

    I want to save Rs 1 crore for my retirement when i turn 60. Now I am 42 years old and have fixed deposits worth Rs 18 lakh.What should I do to reach Rs 1 cr mark?

    A

    start investing a minimum 5000 per month in mutual fund and increase 10% to 20% every year....

  • Q

    I want to save on my utility bills and fuel expenses.Please suggest a good credit card for me.

    A

    Yes, you will be able to save on Utility bills and fuel expenses through the cash back schemes offered by some of the credit card companies....

  • Q

    Suggest couple of equity mutual funds for me. I am keen to invest Rs 25000 per month for next couple of years. I can remain invested for at least five years?

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    I am a senior citizen.I received interest of Rs .1,70,000/- on FD.I have duly filled 15G form.I have NO other source of income.Have I to pay Income tax on this interest or can it be excempted?

    A

    Sir, please note if you are less than 80 years but more than 60 years of age, your total income upto Rs 3,00,000 is exempt from tax, you are...

  • Q

    Please suggest a good money back policy for me. I am 27 years old and want to accumulate Rs 10lakh over 10 years.

    A

    If you are a fan of traditional money back policies, go in for the LIC New Money Back Policy of 20 or 25 years. I would suggest you go in fo...

  • Q

    I want to buy a life insurance for my brother Please suggest a good policy. He is 19 years old. he should get Rs 5 lakh when he turns 25 years.

    A

    Best to go in for a ULIP in case he is looking to grow the money also. Go in for a ULIP like HDFC Click 2 Invest which is very low on charge...

  • Q

    In 2013, I bought an Endowment policy from LIC. Premium for that is around 35K per year. Now i understand, this was a big mistake and i want to go for a term insurance policy. I have already paid two premiums in 2013 and 2014 and I want to make this policy paid-up. Can i pay one more premium this year and make that endowment policy paid-up ? Or is there any better alternative ? Please suggest.

    A

    Yes, you can convert to a paid-up policy after 3 years premiums have been paid. I would recommend that you surrender the plan and take back ...

  • Q

    Is zero depreciation cover a good option under auto insurance? I have plans to buy honda city in January

    A

    Zero depreciation is a good option to along with the standard car insurance plan. By paying a slightly increased premium you can ensure that...

  • Q

    I am 20 years old,I am getting 17+ % or returns from share in my portfolio consistently for the last 6 months.should i think about a career in stockbroking?

    A

    Its nice to note that your portfolio has been gaining such high returns, however it might be too early to take a call and make stockbroking ...

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.