Founder - Ladder7 Financial Advisories, Contributor Content
Solution: The govt can help needy seniors with clear targeting. An extra 1% pa in specific schemes can be given to those who are not covered by pensions and do not have taxable incomes.
2020 will go down as a turning point in human history. Many of us have faced health scares, income disruption, economic uncertainties, debt security default worries in this period. Also, during this period, interest rates have been coming down as the government wanted to hold down the rates and make it easier for businesses to borrow and stay afloat.
But there has been collateral damages due to this move. Those dependent on the interest from their investments have been affected as they find that they get much less for their investment now. They have understood the perils of reinvestment risk now! This is compounded by the fact that inflation has been higher than the tolerance limits set by the Reserve Bank of India (RBI), which is up to 6%