T. R. Anandan
Since the population of senior citizens is fast rising, there is a strong case for providing better rate of return for the bank deposits. Though investments in mutual funds could prove to be risky, there are certain schemes that may suit the senior citizens.
- T. R. Anandan, Coimbatore
There are very few investment options for senior citizens in India. While there are many choices available for the youth, senior citizens are left with few options. The health insurance premium is also very high for people above 60 years of age. Besides they are often left with high hospital bills. Mutual funds are also turning to be less attractive these days as the stock market is not doing well. Bank deposits may fetch higher interest but the returns are taxable. In many ways, senior citizens are feeling the pinch.
- V. Ramjee, e-mail
Senior citizens cannot afford to take much risk and they should learn to balance risks and returns. They have many investment options such as fixed deposits, post-office monthly income plans or bonds. Senior citizens’ savings scheme is a good option for those looking for a regular income. Post office monthly income scheme also gives a fixed return. Monthly income plans are offered by mutual funds and the tax treatment is different compared to the above two. The monthly income fund distributes dividends and it also provides capital appreciation for the corpus invested.
- T.V. Jayaprakash, Palakkad
The authority entrusted with the task of drawing up investment schemes for the senior citizens must first understand the requirements of this section of the population characterised by lack of regular income, age-related problems and social security issues. Senior citizens, investing their hard-earning savings, would look for security of their investments combined with assured, regular and reasonably good returns to take of their day-to-day requirements and also contingencies like medical expenses.
* The schemes should involve minimum paperwork; so that senior citizens are not subjected to any harassment in the name of compliance.
* The schemes must be advertised in print and the visual media and also be made available at all branches of banks and post-offices.
* The product marketed should assure security and reasonably good returns.
* It should take care of loan/overdraft requirements, if any, by having suitable provisions inbuilt in the product, with a nominal rate of interest for the loan component.
* It should also offer pre-closure without any penalty.
- M. S. Vaidyanathan, Chennai
At present, the various departments of the Government do not follow the common prescribed minimum age for the senior citizens. Senior citizens must be offered 2 per cent more interest over the regular interest rates on deposits in banks. And also the Government must take necessary steps to refund the bank deposits without any cut in interest rate in case of premature withdrawal.
* LIC can also come out with more remunerative schemes for senior citizens with extra returns. Banks must also introduce loan schemes for senior citizens. The government must be more sympathetic to senior citizens and extend all possible assistance. Senior citizens must be given 50 per cent subsidy in public transport.
- Dr K.K. Ammannaya, Udupi
The population of senior citizens is increasing in our country and they are also facing many problems. Given the high rate of inflation prevailing in our country, they are finding it extremely difficult to cope with the rising prices. Though a few banks have introduced new schemes like reverse mortgaging, it has failed to gain popularity.
- V. Venkitasubramanian, Kochi
http://sticklishissues.blogspot.com
Copyright © 2008, The Hindu Business Line.
July 28, 2008
INDIA: Investment options for senior citizens
CHENNAI (The Hindu BUSINESS LINE), July 28, 2008:
Mentor - Investments
Columns - Sticklish Issues
Web Extras - Interest Rates
The senior citizens of this country face many problems. Banks do not offer more than 9.5 per cent on term deposits. Mutual funds investments are subject to market conditions. Post-office deposits earn around 8 per cent and the rates have not been raised for quite sometime, not even after inflation has crossed 12 per cent. In case of returns provide by banks and post offices, the Government should introduce schemes, whereby the senior citizens are paid at least 12 per cent interest, which will help them earn decent returns on their savings.
-R. Swaminathan, e-mail
In India, senior citizens have been a neglected lot. However, in the last decade, some measures had been taken to ease their woes. Notable ones are the reverse mortgage scheme and the senior citizen savings scheme (SCSS). The government should also address the following issues:
* There should be no ceiling on investment in policies that offer good returns.
* Rate of interest offered on SCSS should be tax-free.
* Tax-friendly investment avenues that offer better market returns to the elderly should be introduced.
* Elevation of the upper age limit to take care of their health needs.
* The Government should have schemes for geriatric healthcare.
- Ashok Jayaram, Bangalore
T. R. Anandan
Since the population of senior citizens is fast rising, there is a strong case for providing better rate of return for the bank deposits. Though investments in mutual funds could prove to be risky, there are certain schemes that may suit the senior citizens.
- T. R. Anandan, Coimbatore
There are very few investment options for senior citizens in India. While there are many choices available for the youth, senior citizens are left with few options. The health insurance premium is also very high for people above 60 years of age. Besides they are often left with high hospital bills. Mutual funds are also turning to be less attractive these days as the stock market is not doing well. Bank deposits may fetch higher interest but the returns are taxable. In many ways, senior citizens are feeling the pinch.
- V. Ramjee, e-mail
Senior citizens cannot afford to take much risk and they should learn to balance risks and returns. They have many investment options such as fixed deposits, post-office monthly income plans or bonds. Senior citizens’ savings scheme is a good option for those looking for a regular income. Post office monthly income scheme also gives a fixed return. Monthly income plans are offered by mutual funds and the tax treatment is different compared to the above two. The monthly income fund distributes dividends and it also provides capital appreciation for the corpus invested.
- T.V. Jayaprakash, Palakkad
The authority entrusted with the task of drawing up investment schemes for the senior citizens must first understand the requirements of this section of the population characterised by lack of regular income, age-related problems and social security issues. Senior citizens, investing their hard-earning savings, would look for security of their investments combined with assured, regular and reasonably good returns to take of their day-to-day requirements and also contingencies like medical expenses.
* The schemes should involve minimum paperwork; so that senior citizens are not subjected to any harassment in the name of compliance.
* The schemes must be advertised in print and the visual media and also be made available at all branches of banks and post-offices.
* The product marketed should assure security and reasonably good returns.
* It should take care of loan/overdraft requirements, if any, by having suitable provisions inbuilt in the product, with a nominal rate of interest for the loan component.
* It should also offer pre-closure without any penalty.
- M. S. Vaidyanathan, Chennai
At present, the various departments of the Government do not follow the common prescribed minimum age for the senior citizens. Senior citizens must be offered 2 per cent more interest over the regular interest rates on deposits in banks. And also the Government must take necessary steps to refund the bank deposits without any cut in interest rate in case of premature withdrawal.
* LIC can also come out with more remunerative schemes for senior citizens with extra returns. Banks must also introduce loan schemes for senior citizens. The government must be more sympathetic to senior citizens and extend all possible assistance. Senior citizens must be given 50 per cent subsidy in public transport.
- Dr K.K. Ammannaya, Udupi
The population of senior citizens is increasing in our country and they are also facing many problems. Given the high rate of inflation prevailing in our country, they are finding it extremely difficult to cope with the rising prices. Though a few banks have introduced new schemes like reverse mortgaging, it has failed to gain popularity.
- V. Venkitasubramanian, Kochi
http://sticklishissues.blogspot.com
Copyright © 2008, The Hindu Business Line.
T. R. Anandan
Since the population of senior citizens is fast rising, there is a strong case for providing better rate of return for the bank deposits. Though investments in mutual funds could prove to be risky, there are certain schemes that may suit the senior citizens.
- T. R. Anandan, Coimbatore
There are very few investment options for senior citizens in India. While there are many choices available for the youth, senior citizens are left with few options. The health insurance premium is also very high for people above 60 years of age. Besides they are often left with high hospital bills. Mutual funds are also turning to be less attractive these days as the stock market is not doing well. Bank deposits may fetch higher interest but the returns are taxable. In many ways, senior citizens are feeling the pinch.
- V. Ramjee, e-mail
Senior citizens cannot afford to take much risk and they should learn to balance risks and returns. They have many investment options such as fixed deposits, post-office monthly income plans or bonds. Senior citizens’ savings scheme is a good option for those looking for a regular income. Post office monthly income scheme also gives a fixed return. Monthly income plans are offered by mutual funds and the tax treatment is different compared to the above two. The monthly income fund distributes dividends and it also provides capital appreciation for the corpus invested.
- T.V. Jayaprakash, Palakkad
The authority entrusted with the task of drawing up investment schemes for the senior citizens must first understand the requirements of this section of the population characterised by lack of regular income, age-related problems and social security issues. Senior citizens, investing their hard-earning savings, would look for security of their investments combined with assured, regular and reasonably good returns to take of their day-to-day requirements and also contingencies like medical expenses.
* The schemes should involve minimum paperwork; so that senior citizens are not subjected to any harassment in the name of compliance.
* The schemes must be advertised in print and the visual media and also be made available at all branches of banks and post-offices.
* The product marketed should assure security and reasonably good returns.
* It should take care of loan/overdraft requirements, if any, by having suitable provisions inbuilt in the product, with a nominal rate of interest for the loan component.
* It should also offer pre-closure without any penalty.
- M. S. Vaidyanathan, Chennai
At present, the various departments of the Government do not follow the common prescribed minimum age for the senior citizens. Senior citizens must be offered 2 per cent more interest over the regular interest rates on deposits in banks. And also the Government must take necessary steps to refund the bank deposits without any cut in interest rate in case of premature withdrawal.
* LIC can also come out with more remunerative schemes for senior citizens with extra returns. Banks must also introduce loan schemes for senior citizens. The government must be more sympathetic to senior citizens and extend all possible assistance. Senior citizens must be given 50 per cent subsidy in public transport.
- Dr K.K. Ammannaya, Udupi
The population of senior citizens is increasing in our country and they are also facing many problems. Given the high rate of inflation prevailing in our country, they are finding it extremely difficult to cope with the rising prices. Though a few banks have introduced new schemes like reverse mortgaging, it has failed to gain popularity.
- V. Venkitasubramanian, Kochi
http://sticklishissues.blogspot.com
Copyright © 2008, The Hindu Business Line.
