Enjoy senior citizen discounts
For those of you who are finding it hard to come to terms with being a retiree, or are resentful about aging, here’s something to shake you out of that ‘down-in-the-dumps’ mood and make you wake up and smell the coffee.
Remember how you were working your butt off to put food on the table and pay the bills when you were part of the work force? There was no time to stop and take in the scenery, to enjoy the drive. Life was passing you by. Well, now’s the time to do things at your own pace, to savour the coffee and a piece of cake to go with it as well.
Forget the younger folks who think those who cross 60 are over the hill. Those fools will look even more stupid when they get here and see there’s some good stuff on this side of the hill as well.
It’s true many of us now have to live on a fixed income, but we do get to enjoy some bonuses. And one of the bonuses that comes like a package deal along with retirement is the handy mix of concessions for senior citizens. And not just in India, anywhere you travel in the world you’ll be able to cash in on senior citizen discounts and rake in the savings.
A lip-smacking preview of concessions for seniors
Actually Ravi and I had our first taste of this, literally, when we were holidaying in Delaware in the US three years ago. After a rather satisfying shop-till-you-drop session at the Tangers Outlets Mall at Rehoboth Beach (hundreds of big name factory outlets, tax-free shopping, h-u-g-e bargains…) we decided to take a break and grab a bite at the IHOP (International House of Pancakes) restaurant there.
And guess what? Stretched across the front of the restaurant was a large banner announcing that their weekly half price discount for seniors (55+) was on! What do you think we did? You’re right, we thanked our stars and rushed inside.
The place was buzzing with diners. But a pleasant waitress greeted and seated us right away. On hesitantly informing her we were visiting from India, were over 55, wanted to order from the senior half-price menu, but didn’t have any age proof with us, she brushed aside our doubts with a wave of her hand.
“Don’t worry, I believe you,” she said cheerfully. Whipping out a note pad to take our order, she stopped abruptly and added with a reassuring smile, “Of course, I didn’t mean you look over 55… no way!” (Have to admit I was secretly thrilled to hear this!) So that’s how we got to enjoy two large platters of a mix of their famous sweet and savoury crepes for the price of one –for just around $7!
That gave us a fore taste of what was in store for us a few years down the line. Now it feels great to be part of a demographic that can enjoy such special discounts. Here’s an overview of the concessions for senior citizens in India:
Banking
Most public and private sector banks offer senior citizens 0.25% to 1% more interest on fixed deposits. Many private sector banks offer up to 25% discount on the locker deposit, besides allowing a higher withdrawal limit per day and a lower limit for average monthly balance.
Deposits in the Post Office Savings Account can earn senior citizens an interest of 9.2% for 5 years.
A number of major banks in India like the Bank of Baroda, Punjab National Bank, IDBI, and State Bank of India offer any house owner over 60 years of age a loan against their property called Reverse Mortgage Loan without having to pay any tax. The loan can be taken for day to day expenses and also for health care, home improvements, etc.
The maximum amount you can borrow varies from bank to bank but could be around 60% of the property value while the maximum tenor of the loan could be 10-20 years. The borrower can opt for receiving monthly/quarterly/half yearly/annual or lump sum payments as per their wish. When the borrower dies, the bank recovers the loan amount from the sale of the property and the balance is paid to the heirs.
If a couple borrows this money, after the death of either spouse, the other partner can continue to receive the payment from the bank for as long as he or she lives. The rate of interest charged is lower than that applied to other loans but varies slightly from bank to bank. For example:
IDBI Bank – 11.50% (i.e., Base Rate + 1.25%)
PNB – 10.25% Base Rate + 2.5%
Income Tax
As of FY 2014-15: Income tax exemption is offered for an income upto Rs. 3.0 lakh p.a. to all senior citizens who are between 60 – 80 years old. Those above 80 are given an exemption limit of Rs 5 lakh per annum.
A higher rate of interest is offered on Tax Saving Fixed Deposits in banks, where the maximum amount that can be deposited in one financial year is Rs 1.5 lakh and the lock-in period is 5 years. Here are some of the rates of interest offered in some major banks:
- Yes Bank – 9.5%
- IDBI Bank – 9.5%
- Axis Bank – 9.0%
- ICICI BANK – 9.25%
If you go in for a similar tax saving scheme at any post office, you’ll get 8.5% to 8.8% interest on your deposit.
Travel
The Indian Railways offers a whopping 50% discount on base fare to women over 58 years of age and a 40% discount on base fare to men over 60 years of age.
There’s a 50% concession in Maharashtra State Transport bus fare for those over 65 years.
Most airlines in India offer a 50% discount on the basic economy class airfare to seniors above 65 years on all domestic flights. Air India offers this concession to those who are 63 years old and above.
Medical Care
Treatment is offered free of cost or at a concessional rate to those over 60 years in many Government Hospitals. Some private hospitals offer up to 30% concession for senior citizens.
Telecommunications
MTNL: For the 250 plan, those over 65 years of age are offered a 25% discount in the monthly rental and installation charges.
BSNL: Only registration charges are waived.
Discounts abroad
In the US, UK, and other countries, many popular family dining restaurants have lower prices for seniors. And in some like IHOP, the lower age limit is 55 years. Museums, national parks and other tourist attractions also have senior citizen discounts on the entry fee. So when you travel abroad always ask when you visit such establishments or you could miss out on the concessions offered to seniors.
If you know of any other discounts do share this information by leaving a comment, OK?
See ya… and keep smiling!
