Union Budget 2026: Senior living real estate seeks pension-linked payouts, wider insurance cover and policy support to make elder care affordable and scalable

Ahead of Budget 2026, senior living real estate players are seeking targeted policy support as demand rises with India’s ageing population. Key asks include formal recognition of senior living as a core real estate segment, infrastructure status, and pension-linked, tax-efficient products to help seniors convert retirement savings into a steady monthly income for living and care needs.A key demand is the creation of pension-linked, tax-efficient financial products that allow seniors to convert their retirement corpus into predictable monthly payouts, either to support living and care expenses directly or to be routed to care providers.

Subhankar Mitra, independent consultant and former MD of Colliers India, said policymakers should look beyond healthcare benefits and address the larger issue of predictable cash flows for seniors.

“The government can consider creating pension funds where payouts are either routed directly to senior care institutions or structured as assured monthly support,” Mitra said.

Managing finances becomes increasingly difficult for the elderly. Such an approach would also provide care operators and developers with cash flow certainty, encouraging greater participation and capacity creation in the sector, he told Hindustan Times Real Estate.

Mitra pointed out that traditional retirement instruments such as fixed deposits or recurring deposits often generate limited income, which is insufficient to meet recurring senior living expenses that can run into ₹50,000–60,000 a month. Drawing parallels with global models, he said countries such as the US and parts of Europe have well-established private pension funds that allow retirees to deploy their entire retirement corpus and receive regular monthly payouts.

“These pension-backed models, often supported by sovereign frameworks, enable seniors to convert their savings into steady income streams,” he said, noting that large global investors actively participate in such funds. Introducing similar age-linked, tax-efficient pension products in India, restricted to individuals aged 60 and above, could significantly improve affordability and financial security for seniors, while strengthening the senior living ecosystem, he said.

Rajit Mehta, MD and CEO of Antara Senior Care, highlighted the need to strengthen reverse mortgage norms, allowing seniors to unlock up to 80 per cent of their property value across city tiers.

“This would significantly enhance financial independence for seniors while enabling them to age with dignity,” he said.

Grant infrastructure status to the senior living sector

Granting infrastructure status to the sector, Mehta said, would improve access to long-term, affordable financing and encourage quality capacity creation across cities. He further underlined the importance of a dedicated nodal agency to bring policy coherence across states and departments.

Rajagopal G, Co-founder and CEO of Serene Communities by Columbia Pacific, said the sector is at an inflexion point and requires formal recognition as a distinct asset class, separate from conventional real estate or hospitality. Such recognition, he said, would bring regulatory clarity, encourage responsible investment and enable frameworks aligned with the evolving needs of older adults.

Shreya Anand, Director, Vedaanta Senior Living, noted that seniors are increasingly seeking autonomy, dignity and meaningful engagement rather than just basic care.

Such mechanisms, they argue, would address the biggest affordability gap in senior care, where monthly costs often far exceed returns from traditional savings instruments, while also providing operators with stable cash flows to scale responsibly.

Real estate experts say it is equally important to strengthen geriatric care in rural and semi-urban areas, increase investment in senior-safe public spaces, improve public transport design, and create more age-friendly employment opportunities that keep seniors engaged and included.