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Life expectancy

The average age of Indians is on the rise mostly because of the better economic status and healthcare facilities that have emerged over the years.

The average age of Indians is on the rise mostly because of the better economic status and healthcare facilities that have emerged over the years.

  1. 40% has been the rise in life expectancy over the past 38 years.
  2. Over the past four years, (2005-8), life expectancy has gone up by more than 4 years.
  3. 7.5% of India’s population falls in the senior category.
Live longer
  1. 1970: 49
  2. 1990:58
  3. 2005: 64
  4. 2008:68.6

Life expectancy in years; Source: Unicef

The gender gap

  1. Men: 37 million
  2. Women: 38 million

(No. of men and women over 60 years in India)

Rates of relevance for seniors

  1. 20-25% is the discount offered by airlines to senior citizens on full economy fares.
  2. Rs 60,000 is the deduction under Section 80DDB for medical treatment of those above 65 years.
  3. 9% is the quarterly interest rate for the Senior Citizens Savings Scheme.
  4. 60 is the age at which the Indian Railways starts giving discounts to the elderly.
  5. 0.5-1% is the additional interest on bank fixed deposits that senior citizens can avail of.
  6. 65 is the age when senior citizens can begin availing of tax benefits.
  7. 50% is the concession for women above 60 years across all classes of rail travel.

Taxation
Taxable Income (Rs) Tax Liability (Rs)
2 lakh 0
4 lakh 28,325
6 lakh 79,825
8 lakh 1,41,625
10 lakh 2,03,425
12 lakh 2,91,747.5
14 lakh 3,59,727.5
16 lakh 4,27,707.5
18 lakh 4,95,687.5
20 lakh 5,63,667.5
After full benefit of Section 80C and Section 80D; Tax liability includes surcharge and education cess and has been calculated for the financial year 2008-9.
 
Tax Rates
Total Income (Rs) Senior Citizens
Up to Rs 2.25 lakh Nil
Rs 2.25 lakh to Rs 3 lakh 10
Rs 3 lakh to Rs 5 lakh 20
Above Rs 5 lakh 30
• A surcharge of 10% is applicable if the total income exceeds Rs 10 lakh.
• Education cess of 3% is payable on the amount of income tax (including surcharge) for all income levels.

Health Insurance

A look at the premium rates for various mediclaim policies for senior citizens across insurance companies.

The takeaways:

  1. You can avail of tax deduction up to Rs 20,000 under Section 80D.
  2. If you had taken a policy earlier, continue with it into old age and get discounts for claim-free years. This will help bring down your premium cost.
  3. Let’s assume that someone takes a health insurance plan for Rs 2 lakh at 35 years and continues it till 60 years and beyond. Given the current premium rates, it works out to an average premium of Rs 5,000 a year for the next 25 years.