(This came to me as a ‘forward’. It makes great sense and is a genuine plaint. A senior citizen has no hope that someone is looking out for him. As jobs get scarcer and medicines become stronger, we are condemned to longer and longer lives. And the rulers, do not seem to care enough. What is particularly telling is the comment that the legislators have the right to fix their own pay, so they are not worried at all.)

A Senior citizen posted the following on the facebook page of PM Mr. Narendra Modi and sent an email to FM Mr. Arun Jaitley. For information of all my friends.

Respected Prime Minister Shri Narendra Modi ji,
Respected Finance Minister Shri Arun Jaitely ji,

First of all I extend my sincere thanks in anticipation that you will spare a few minutes of your valuable time to read and take suitable action in the matter.

I am a senior citizen and on 01.08.2012, I put Rs 40 lakhs in a nationalized Bank for 5 years. I was being paid an amount of Rs. 35,352/- every month (of course subject to income tax) enabling me to lead a worry free life financially. Now on maturity I have reinvested the amount in the same Bank and I will be paid Rs. 26,489/-; a shortfall of Rs. 8863/- i.e. 25% over the previous return, per month. Can you please advise me from where I should make good the loss or sacrifice consumption of medicines or atta or dals or vegetables or fruit or milk or what?

Practically your government after taking over in 2014 has done nothing for senior citizens. No additional facilities extended but withdrawal of what existed in 2014. No commodity or provision item is available at the price of 2014. Yes you have been able to bring down the figures of inflation and indices but not the actual prices. Every off and on the prices of some essential daily use items go rocket high like dals, chana/besan, salt, onion and now the tomatoes. At that time we cannot even dare see those items.

I know you have political and the theoretical replies for these issues like interest on deposits and advances in banks depend on demand and supply. The prices of daily use items vary with seasons being agricultural products. But the straight upward shoot of prices cannot be justified by these reasons. If the government wants to provide cheaper credits to the trades and industries, it should not be at the cost of depositors. Banks are sitting over volcanoes of NPAs and all good money is being diverted for bad money. On the other hand banks have exponentially increased service charges on anything and every thing.

In desperation we look for investments in equity or mutual funds. There also over scrupulous elements outsmart us and hardly give us any returns. Your NPS scheme is of no use to us at this stage.

But is it not the duty of the government to enable the senior citizens to lead a respectable life who have spent their golden years in serving various organizations and finally the nation? Government cannot see the other way. I am at a loss to understand from where this deficit of 25% be met.

It may not be appropriate for me to question lije this but i am compelled to. Is any of the minister/MP/MLA is ready to cut his salary and allowances by this percentage? If not, then why the public especially the senior citizens?
Perhaps it is because that, like you, we do not have the power to fix our own salaries, allowances and perqs and getting everything for full year, for sessions of total of 3 months and that too attending sessions at their sweet will. When the matter of increasing your salaries comes, you pass the same just in 2 minutes with no discussion, with all heads together be it from ruling or opposition benches. For this increase, you totally over look the cost to the exchequer, deficit, economics and any other factor.

The government had started a scheme for deposits of senior citizens and the rate was 9.20% but In July, 14 it was reduced to 8.3%; the amount limited to Rs 15 lakhs. This is totally unjustified. The rate should be a minimum of 12% and the amount limit should be equal to what a person gets as terminal benefits. The government should ensure financial respectability to the senior citizens to walk with their heads straight.

I am sure you will understand the plight of the people whose good part of expenses comes from the interest of their savings of life time.
Sorry if I have offended you in any way.
Thanks and Regards

D. P. Bhateja 2246 sector 48C Chandigarh
Mobile : 9417819504


8 thoughts on “The lament of a Senior Citizen

  1. A most heartrending but true account of the sorry situation the seniors find themselves in.But which party or action group will voice their concerns to the government and obtain redress for them.


  2. Truly, senior citizens needing regular income are in dire situation today. Not just today, but for the next 3-5 years atleast, the situation looks grim. Only option remains is to start dipping temporarily into the principal for expenses, while investing the remaining into a basket of debt and equity mutual funds. Prudently manage income/capital gains such that income tax outgo is nil while capital gains taxes are minimized by long term debt/equity returns. Highly highly risky scenario…sad…sad.


    1. This method may only be suitable to the younger generation.Seniors do not have the expertise or energy to go through the whole rigmarole.Moreover they have better things to do in life.


  3. Sir,

    My parents face the same dilemma.

    1. Falling interest rates makes FDs a net loss vis-a-vis inflation.
    2. Debt funds may entail capital loss (except maybe liquid funds which again do not give returns)
    3. We are forced to put funds in equity where the exit time frame of 10 years (and the current sky-high valuation) makes it a rather unpalatable choice.

    It seems capital attenuation + part equity to generate capital over the long term seems the only option for a comfortable retirement.

    Can you please do a post for senior citizens who face this situation.



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