Retirement from the daily grind of a 9 to 5 job can be considered a blessing by many. But, of course, this phase of life can also prove to be challenging especially for those who haven’t planned efficiently for their post-retirement years.
Sayali’s grandma is one such senior citizen who was often plagued by rising costs and the impact of inflation on her future. Grandma understood the importance of being financially independent at her age in order to take care of medical emergencies, her interests and hobbies, and also to contribute to cover her family’s expenses. As someone who had dabbled in shares in her younger days, she knew the advantages of trading.
However, post-retirement, she was unsure if she still had it in her to trade proficiently. She had the means — her savings and past investments. She even knew the basics of trading. All she needed to do was just revive her knowledge a bit again. What she needed was some support to empower her.
This is when HDFC Bank’s Empower — for Senior Citizens comes to her rescue. HDFC Bank’s Empower — for Senior Citizens ensures that seniors retire from their jobs but not from earning.
Come to think of it, senior citizens are well equipped to trade. They have the savings, life experience, and patience, enabling them to observe and make the right decisions. These qualities come in handy for one who needs to trade like a pro in the stock market.
Here are a few other reasons why empowering senior citizens to trade can be an efficient approach:
The luxury of free time
Free time in senior years is perfect for learning about the stock market. There are numerous online and offline courses to educate you and help you start or restart your financial journey. Regular traders can equip themselves with more knowledge that will help them make sound trade decisions, whereas those who want to start afresh can learn the basics of investing.
The wealth of experience and knowledge
After spending years honing expertise in their professional fields and gaining rich experiences in their lives, senior citizens are experts at taking decisions after doing thorough research. This is why they are likely to do very well in a field like trading. All they need is a bit of research before investing.
The tax efficiency advantage
For long, fixed deposits have been one of the most preferred investments for a majority of senior citizens. However, interest rates have been dropping in recent years and may continue to decline. Interest on income is taxed at the same rate as other types of income. Furthermore, 10% is deducted as TDS up front in certain cases. Stock investments, on the other hand, may be subject to a lower income tax rate. Long-term capital gains income is taxed at a much lower rate, i.e. 10% on earnings over ₹1 lakh plus the benefit of indexation is also available. Dividends, too, have tax benefits.
By empowering senior citizens, they can take a strong step ahead toward stock market investment and fortify their wealth by generating income that has the potential to beat inflation.
Why choose Empower — For Senior Citizens
HDFC Securities’ plan is available for customers older than 60 years of age. It offers a free equity delivery volume of ₹5 lakh along with 90 days of free equity delivery volume and free equity intraday. The charge for derivatives from day one is ₹20 per order. This will help you save on brokerage.
The plan is for empowering senior citizens, whether experienced or new in the stock market to start or restart their trading or investment journey. The first step towards a fulfilling financial journey would be opening a Demat Account. Sayali’s grandma took this first step confidently, so should you or any senior citizen you know!
Click here to open a Demat Account now!
Read more about the Whizz plan here!
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.