With the bank interest dropping day by day, the senior citizens life is becoming more and more difficult. Generally senior citizens avoid investing in mutual funds and stock markets because of uncertainty of returns, so they mostly invest in Bank’s fixed deposits. so what is the present rate of interest offered by various banks ranges fro 7 to 7.4%, which is very low. I have certain observations to make
1.Who deposits money in the bank, generally they are middle class persons, who over the years have formed the habit of savings for the future,as most of them are small time traders, employees in non govt sector.
2.Govt to promote the growth of business is asking banks to reduce the lending rates, so that promoters burden on the cost of finance reduces. Al these lower rates of interest are applicable to very big projects.
3. I want to know from banking sources, how many of these big type of promoters return the money to bank or even pay interest regularly, classical examples are Kingfisher and Sahara group. Even other bigger groups like Adani, Reliance(both brothers), Birlas, Jindal and many more owe banks in lakhs of crores of rupees. These are our hard earned money and they are enjoying the rich life, and some times drawing salary from their company which run in crores of rupees.
4.This is one part of story, other part is all the govt employees receive pensions after retiring and more than 70% of employees only kill time in govt jobs as they get time bound promotions and increase in salary, in spite of whether your performance is worthy of all these.Even in pensions they get increment because it is DA linked. The pension scheme is not applicable to private sector employees
5. Even our law maker enjoy the benefits of pensions, even if you are one time MP or MLA, you will get pension for life time, they also get DA linked pension. And do not ask about the perks they enjoyed at cost of exchequer, which is phenomenal when they are serving, Govt accommodation, free servants, secretary, furnishing allowance, phone allowance which can be Rs 15,000 per month, when most of the mobile cos give the scheme of Rs 399 with unlimited local and std calls
6. In the case of non govt people, what we get is reduced rate of interest so that our income from our own savings reduces.
7. In the most of the developed countries when state gives you old age pension, you have to invest in those pension schemes. In country like USA, Canada, Australia and most of the developed European countries from a person’s income about 35 to 45% is deducted for health benefits, old age pensions, unemployment allowance etc. But here govt employees give back nothing to exchequer for their health and pension benefits. Govt employees just pay income tax and their contribution to Provident fund, as the case in private sector employee.
I just want to ask one question to govt, why this discrimination against senior citizen and private sector employees.
Ankita Malik
True that!
Very well written
Anil Malik Post author
Thanks.
Lalita Pasricha
Very true we the senior citizens are at loss.
Very well written
Anil Malik Post author
Thanks.
R. J. Dhople
True facts are revealed here, should be addressed by the Government. We pay the income tax from our salary throughout we work even after retirement which is not considered for the FDs we keep for our old-age needs which comes only through the interest. We neither get the pension not a fare interest on saving for having worked in private companies. I feel it’s high time that Government identity the people who have paid income tax for more than 20 years and now depend upon the interest on FD, and make arrangements to give at least 50% of pension paid to the clerical grade of Central Government to the senior citizens who have worked as engineers and other categories in private sectors, if additional interest rate can’t be paid through bank. Even this can addup to their income which is meager due to the reduced interest rates in the banks.
Anil Malik Post author
I wanted to initiate this topic, so that every Sr citizen who is affected should raise his voice.
Kiran malik
I fully agree with you.Day by day the interest rate is falling which is affecting the senior citizens most.I hope the govt.should think about it& do something for senoir citizens.
Anil Malik Post author
Govt should do something, but as senior citizens do not have any collective voice, unless they come together and approach govt,then only something will happen.
Tushar Khanna
Very well written .However everything is not so grim, there are various options like senior citizen saving scheme or lic annuity plans for senior citizens.
Anil Malik Post author
Tushar all these schemes what you have mentioned is started about 10 years back. What about people who retired earlier or recently. Those people are not having funds to invest in these types of schemes to avail old age pension. All these schemes are good for people in 30s or 40s. My blog was basically to highlight the plight of present senior citizens.
R. J. Dhople
True I retired in 1995 hence one can imagine my plight of I had not started working again to have something to sustain. Fortunately I could book a flat in PUNE and getting the rent as additional income not depending upon FDs. only. It’s the blessings of almighty that I happened to invest in a flat at right time.