Mr V Vaidyanathan's keynote speech on Senior Citizens at Outlook40After40 Retirement Planning event

Happy to share an interaction with Outlook India on an event focused on retirement planning, organised by IDFC FIRST Bank.

The truth is, for the well-off those with investments in shares, PMS, AIF, etc. retirement may not pose a significant issue. However, for middle-class and lower-income individuals, who often live day-to-day, their expenses grow alongside their income from their 20s to their 50s. Suddenly, in their 60s, they may realise they have little or no annuity income. This can make it difficult for them to manage life and health-related challenges. Lack of retirement planning is a serious issue.

IDFC FIRST Bank has introduced a new app, which, as many of you know, has been rated India’s best mobile app by Forrester. In the upcoming release, we are introducing a dedicated section for senior citizens, offering tailored solutions to meet their needs.

At IDFC FIRST Bank, we already provide ZERO fees on IMPS, RTGS, cash deposits and withdrawals at branches, ATM transactions beyond five, SMS alerts, debit cards, and more services that are typically charged elsewhere. For senior citizens, we have added even more benefits, including a complimentary health benefit package.

When it comes to investments, senior citizens often face a dilemma about which mutual funds to choose, with thousands available in the market. To help, our bank suggests debt-oriented funds, selecting the best ones among them. This is purely an option, and senior citizens are free to ignore our recommendations and invest in funds of their choice.

For fixed deposits, senior citizens receive an extra 50 basis points, and there are no premature withdrawal charges.

We are also acutely aware that fraudsters often target senior citizens, preying on their fears. Phishing, vishing, OTP frauds, and scams are real threats. To protect our senior customers, we provide complimentary cyber security insurance coverage of ₹2,00,000.

Regarding retirement planning, we calculate the future value of money in today’s purchasing power terms. For example, ₹8 crore, 20 years from now, may be worth only ₹2 crore in today’s terms. We give senior citizens the option to choose how much they want to retire with, then calculate how much they need to invest to reach that target, based on long-term historical mutual fund returns. For instance, if you need to invest ₹1 lakh every month until 2044 to accumulate ₹8 crore, we can automatically debit your account and invest in selected funds. You can, of course, opt to handle your investments independently as well.

We also offer an option for digital customer service, specially designed for senior citizens.

We would like to take this opportunity to thank all senior citizens who have contributed so much to our lives through their often challenging circumstances. Particularly for those who lived through India’s 1980s and 90s, when per capita income was low and facilities were basic, you led tough lives. We are grateful to you, our elders, for raising us to become who we are today.

Finally, remember 80 is the new 60!

Best wishes

Download the IDFC FIRST Bank mobile banking app here: https://idfcfr.in/login