Pensioners and senior citizens have strongly reacted to new rates of return on National Savings Schemes and, terming decision "a cruel joke" with them, have demanded review of the rates. Talking to Business Recorder on Wednesday at the National Savings Centre, Nazimabad, a group of pensioners said that the increase in new rates would be eaten away by the soaring inflation of 9.287 percent and at the end of the day the investors would be the losers.
They said that their investment in saving accounts would yield them only 5 percent against the previous rate 4 percent, against the 9.287 percent inflation. In real terms, they would be losers by 4.287 percent, they remarked.
The return on special savings certificates has been increased from 6.95 percent to 8.60 percent. The return would be 0.687 percent less than the rate of inflation.
The rate of return on 'regular income certificate' has been increased from 6.84 percent to 8.88 percent, which is 0.407 percent less than the rate of inflation.
Defence Savings Certificates rate increased from 8.15 percent to 9.46 percent ie, 0.180 percent above the rate of inflation.
The pensioners Benefit Account rate has been increased from 10.08 percent to 11.04 percent, just 0.96 percent difference.
They said that withholding tax at the rate of 10 percent on investment exceeding 150,000 is in addition to the effect of inflation.
They said that the official estimate of inflation, when seen in the light of sensitive price index, is in double digits and defies all claims of the government that it is restricted to 9.287 percent. "In fact, it has gone much above 16 percent", they added.
Aslam Siddiqui, a retired banker, said that there had been no increase in pension of retired bank employees whereas government servant had been given increases.
He said that in comparison to the number of retired government officials the number of senior citizens and employees of non-governmental organisations is more but they do not get as much increase as the government officials get.
S M Ghous, a retired additional secretary of Sindh government, said that those officials who retired in the 1980s and those who retired in the 1990s from similar position with similar length of service get different amounts in pension. One who is younger in age with less liability gets more than the one who has more liability, medical expenses and less opportunities of additional income get more.
In any case, for both of them the only way to maintain a sustainable source of income is to invest in government schemes. "Government, knowing this fact fully well, is trying to press these pensioners and senior citizens hard and is making their lives difficult," he added, and demanded review of these rates.
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