With the unveiling of Budget 2025 just days away, India’s elderly population, expected to grow by 22% over the next six years, is keenly anticipating announcements that could address their financial and healthcare challenges. Rising healthcare costs, coupled with limited tax relief, continue to strain the resources of senior citizens during their golden years.
Experts from the insurance and healthcare sectors have outlined key expectations for measures that could significantly enhance the quality of life for the ageing population.
Call for Higher Tax Deductions and Healthcare Spending
Srikanth Kandikonda, Chief Financial Officer of ManipalCigna Health Insurance, emphasized the need to provide greater tax relief for senior citizens. “Given the rising healthcare costs and the need for higher sum insured cover, the government should reduce the tax burden by increasing the limits under Section 80D of the Income Tax Act to ₹50,000 for all and ₹1 lakh for senior citizens,” he stated. Kandikonda also urged an increase in public healthcare spending and the introduction of policies catering to the medical needs of the elderly.
Incentivizing Pension and Insurance Products
Tarun Chugh, Managing Director and CEO of Bajaj Allianz Life, highlighted the importance of securing financial stability for retirees. “We urge the government to introduce a separate tax deduction for term insurance and extend the tax deduction on life insurance premiums under the new tax regime,” he said.
Chugh further proposed aligning tax benefits for life insurance annuity products with the National Pension Scheme (NPS) while addressing the tax burden on the principal component of annuity payouts. Such steps, he noted, would not only help meet retirement needs but also drive insurance penetration, aligning with the IRDAI’s vision of achieving ‘Insurance for All by 2047.’
Focus on Healthy Ageing and Social Inclusion
Saumyajit Roy, Co-Founder and CEO of Emoha, called for a more comprehensive approach to the needs of the elderly. “We look forward to policies that not only address the financial and healthcare needs of seniors but also foster their social inclusion, recreation, and active participation in society,” Roy said. He underscored the importance of aligning with the global movement towards healthy ageing while strengthening healthcare infrastructure to cater to the demands of an ageing population.
As Budget 2025 approaches, senior citizens and experts alike hope that the government will introduce measures to alleviate financial burdens, enhance healthcare access, and promote the well-being of India’s elderly. With the demographic shift on the horizon, such reforms would mark a crucial step toward ensuring a dignified and fulfilling life for senior citizens.
