10 Major Changes in Pension, Tax, and Healthcare for Senior Citizens in 2025 — Big Benefits Coming Their Way

By Siddhi Jain | Dec 11, 2025, 18:30 IST

Senior Citizen Benefits 2025:
The year 2025 has brought several impactful reforms for India’s elderly population. From easier pension access to higher tax relief, free healthcare, and improved travel facilities, the government has rolled out multiple initiatives aimed at making life smoother and more secure for senior citizens. Here’s a detailed look at the 10 biggest changes that directly benefit them.

1. Pension Withdrawal from Any Bank Branch

Starting January 2025, EPFO’s Centralised Pension Payment System is fully operational.
EPS-95 pensioners can now receive their pension from any bank branch across India, eliminating the hassle of transferring PPOs or dealing with paperwork when they relocate.

2. Digital & Doorstep Life Certificate

Senior citizens can now submit their life certificate from home using online platforms.
Additionally, postmen, banks, and post offices are offering doorstep verification services, making the process extremely convenient for elderly individuals with mobility issues.

3. Senior Citizen Welfare Portal (SCWP)

Launched on 2 May 2025, the SCWP portal brings together:

All government schemes
Healthcare benefits
Social and welfare services
Helplines and support tools

This centralized platform ensures senior citizens can access every service digitally in one place.

4. Free Annual Healthcare Cover of ₹5 Lakh for 70+

Under the Ayushman Vay Vandana Card, citizens aged 70 and above now get:

₹5 lakh free hospitalization cover every year
Coverage for surgeries, major treatments, and in-patient care

The nationwide rollout is currently underway, and eligible seniors can begin availing treatment immediately.

5. Mandatory Monthly Pension Slip

CPAO has directed all banks to send a monthly pension slip to every pensioner via:

This ensures transparency, letting seniors track their credited pension and deductions easily.

6. Guaranteed Lower Berth for Train Travel

Indian Railways has improved travel comfort for seniors.
Whenever available, senior citizens are automatically allotted a lower berth. Special quotas in Sleeper and AC classes further increase the chances of getting a comfortable berth.

7. TDS Exemption on Interest Income Increased to ₹1 Lakh

Budget 2025 doubled the TDS exemption limit on interest income from ₹50,000 to ₹1,00,000.
This applies to:

Fixed deposits
Savings accounts
Other interest-bearing deposits

No TDS will be deducted up to this limit starting 1 April 2025.

8. Higher TDS Threshold on Rental Income

The TDS limit on rent has been increased from ₹2.40 lakh to ₹6 lakh per year.
This significantly reduces the tax burden for seniors who earn income from rented property.
The revised rule is effective from 1 April 2025.

9. NSS Withdrawals Made Completely Tax-Free

After amendments in Section 80CCA through Budget 2025, NSS withdrawals are 100% tax-free from 29 August 2024.
This gives senior citizens more freedom to use their lifelong savings without worrying about tax deductions—an important boost for retirement planning.

10. Bihar Raises Monthly Pension from ₹400 to ₹1,100

At the state level, benefits have increased as well.
The Bihar government enhanced its old-age pension from ₹400 to ₹1,100 per month starting July 2025.
This ₹700 hike provides much-needed financial support to lakhs of elderly residents in the state.