Over the years, the government has launched various schemes and policies for older persons. These schemes and policies are meant to promote the health, well-being and independence of senior citizens around the country. Some of these programmes have been enumerated below.
The central government came out with the National Policy for Older Persons in 1999 to promote the health and welfare of senior citizens in India. This policy aims to encourage individuals to make provision for their own as well as their spouse’s old age. It also strives to encourage families to take care of their older family members. The policy enables and supports voluntary and non-governmental organizations to supplement the care provided by the family and provide care and protection to vulnerable elderly people. Health care, research, creation of awareness and training facilities to geriatric caregivers have also been enumerated under this policy. The main objective of this policy is to make older people fully independent citizens.

This policy has resulted in the launch of new schemes such as-
1. Strengthening of primary health care system to enable it to meet the health care needs of older persons
2. Training and orientation to medical and paramedical personnel in health care of the elderly.
3. Promotion of the concept of healthy ageing.
4. Assistance to societies for production and distribution of material on geriatric care.
5. Provision of separate queues and reservation of beds for elderly patients in hospitals.
6. Extended coverage under the Antyodaya Scheme with emphasis on provision of food at subsidized rates for the benefit of older persons especially the destitute and marginalized sections.

The Integrated Programme for Older Persons is a scheme that provides financial assistance up to 90 per cent of the project cost to non-governmental organizations or NGOs as on March 31, 2007. This money is used to establish and maintain old age homes, day care centers, mobile Medicare units and to provide non-institutional services to older persons. The scheme also works towards other needs of older persons such as reinforcing and strengthening the family, generation of awareness on related issues and facilitating productive ageing.

Another programme of the government is the Scheme of Assistance to Panchayati Raj Institutions voluntary organizations and self help groups for the construction of old age homes and multi service centers for older persons This scheme provides a one time construction grant.

Central Government Health Scheme provides pensioners of central government offices the facility to obtain medicines for chronic ailments up to three months at a stretch.

The National Mental Health Programme focuses on the needs of senior citizens who are affected with Alzheimer’s and other dementias, Parkinson’s disease, depression and psycho geriatric disorders.

Well, the journey towards financial security does not end here. The Central Government is in the process of developing newer plans and schemes to benefit senior citizens. In the 2007-08 Budget, the Finance Minister has proposed to provide monthly income to seniors and develop new health insurance schemes.

For the benefit of senior citizens it has been proposed that-

1. The National Housing Bank will introduce a 'reverse mortgage' scheme under which a senior citizen who owns a house can avail of a monthly stream of income against mortgage of the house. The senior citizen remains the owner and occupies the house throughout his or her lifetime, without repayment or servicing of the loan. Regulations are to be put in place to allow creation of mortgage guarantee companies.
2. An exclusive health insurance scheme for senior citizens is to be offered by the National Insurance Company. Three other public sector insurance companies as mentioned in the Medical Insurance section, are to offer a similar product to senior citizens.
3. The Maintenance of Parents and Senior Citizens Bill (Enclosed) of 2007 - This bill has been recently introduced in Parliament. It provides for the maintenance of parents, establishment of old homes, provision of medical care and protection of life and property of senior citizens.
These new developments for senior citizens are meant to get them on the path to a better, peaceful and financially sound life.

Income tax is a portion of your annual income that is paid to the government at the end of every financial year. This tax money is used to fund various developmental activities, build infrastructure and for defence purposes. The government provides various tax benefits and tax exemptions to certain categories of people such as sportspersons, women and senior citizens. This is done to encourage them to continue earning, investing and providing for themselves.

Those who attain the age of 60 years and above are eligible for the following exemptions extended by the government:
* Section 88 of Finance Act, 1992, provides income tax rebate of up to Rs. 15,000 or actual tax whichever is less to senior citizens who have attained the age of 65 years at any time during the relevant previous year.
* Senior citizens are excluded from the “One by Six” scheme for filing the Income Tax Return under provision Section 139(1).
* For senior citizens, the deduction in respect of medical insurance premium is up to Rs. 15,000/- under Section 80 D.
* Separate counters are marked for senior citizens at the time of filing Income Tax Returns. Senior citizens who are 65 years and above as on 31st March of the assessment year should be pensioners. They should come personally, if they wish for priority while submitting their Income Tax Returns. Besides, on the spot assessment facility is also provided.

The government assigns special priority towards senior citizens by providing them tax benefits higher than that of general taxpayers.

Personal loans are helpful when one is in immediate need of financial assistance. Senior citizens are usually denied regular loans because of their inability to show proof of a regular level of income. However, recently, banks have started offering loans to pensioners and older people who can provide collateral in the form of an asset such as a home or land. This loan can be used to meet various expenses such as medical costs, marriage of grand children or paying old age home fees.

Loans such as UCO bank’s ‘UCO Pensioner’ and ‘UCO Mortgage’ are specially created for senior citizens. Other banks that offer special loans for senior citizens are the Bank of Saurashtra, Union Bank of India and the United Bank of India. Some features of loan schemes for senior citizens are the simple procedures, special counters and information centers that are available.

Retirement and pension benefits are provided to retired government officials to ensure a regular income and a secure future. The provision of such financial benefits results in a feeling of independence and a decent standard of life. As far as retirement benefits are concerned, they usually consist of leave encashment, retirement gratuity and contributed provident fund.

Along with these retirement benefits, senior citizens are also entitled to pension benefits that allow them to live a hassle free life after completion of their job tenure. Different types of pension available to senior citizens are superannuation, retiring pension, voluntary retirement pension, compensation pension, compassionate allowance, extraordinary pension and family pension.

Superannuation pension is meant for those government officials who retire at the age of 60 years. Voluntary pension is awarded to those who wish to retire three months in advance after completing 20 years of service. Extraordinary pension is another pension scheme that is awarded to those government employees who are disabled or the families of those employees who lose their lives during the tenure of their job.

Dearness Allowance or DA is another benefit provided to senior citizens. The Government announces DA rates twice a year. This allowance is added to the salary or pension of government employees. DA rates are also applicable to senior citizens who have taken complete retirement. Those who go in for reemployment are not eligible to avail dearness allowance.

The minimum eligibility period for receipt of pension is 10 years & above. However, a Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.

In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.

Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial w.e.f. 02.09.2008. Before 02.09.2008,for qualifying service of less than 33 years, amount of pension is proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-

Pension amount = R/2(X)61/66

Where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.

Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay (including Dearness Pay) in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.

A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.

Lump sum payable is calculated with reference to the Commutation Table constructed on an actuarial basis. (Appendix to CCS [Commutation of Pension] Rules, 1981.) The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion)

The formula for arriving for commuted value of Pension (CVP) is
CVP = 40 % (X) Commutation factor* (X)12

* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the new table as Annexure to this Deptt's O.M. No 38/37/08-P&PW(A) dated 2.9.2008

Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity or Rs. 1,000/- whichever is less, is withheld from gratuity.

Senior citizens enjoy additional benefits in terms of saving schemes and interest earned on them. Interest is levied on the amount of money deposited for a particular time period. The rate of interest varies for different durations and is liable to change from year to year. Most banks provide a higher rate of interest to senior citizens than the rate available to the general public. They usually ask for proof of age before opening up such an account.

Apart from these benefits, senior citizens also enjoy an annual interest rate of 9 per cent on deposits made by them in post offices, as on March 31, 2007. For information about opening a Post Office Account, contact the nearest branch in your area.

The Reserve Bank of India has permitted higher rates of interest on saving schemes of senior citizens. Accordingly, banks have allowed an added interest on fixed deposits for every term as on. Tax is deducted at source for interest on fixed deposits. This makes this form of investment a useful tax free form of income for older people.

Other than higher interest rates on deposits, senior citizens also enjoy exemptions on penalty rates for premature withdrawal of term deposits. Fixed deposits are sometimes withdrawn to tide over emergencies like sudden medical expenses and hospitalization. In this case, senior citizens are either exempted completely or charged a meagre percentage rate of their deposits.

Some banks like UCO Bank provide complete exemption to senior citizens for premature withdrawal of term deposits. Other banks like ICICI Bank currently charge around 0.5 to 1.5 per cent penalty depending on the amount of deposit, as on March 31, 2007. For information about current interest rates and other details, one may like to visit the local bank in your vicinity.

This is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable is 16½ times the Basic Pay, subject to a maximum of Rs. 10 lakhs.

Old age homes are meant for senior citizens who are unable to stay with their families or are destitute. States in India such as Delhi, Kerala, Maharashtra and West Bengal have developed good quality old age homes. These old age homes have special medical facilities for senior citizens such as mobile health care systems, ambulances, nurses and provision of well-balanced meals.

There are more than a thousand old age homes in India. Most of them offer free accommodation. Some homes work on a payment basis depending on the type and quality of services offered. Apart from food, shelter and medical amenities, old age homes also provide yoga classes to senior citizens. Old age homes also provide access to telephones and other forms of communication so that residents may keep in touch with their loved ones. Some old age homes have day care centres. These centres only take care of senior citizens during the day.

For older people who have nowhere to go and no one to support them, old age homes provide a safe haven. These homes also create a family like atmosphere among the residents. Senior citizens experience a sense of security and friendship when they share their joys and sorrows with each other. Here is a list of a few old age homes in India.