Pension under Employees’ Pension Scheme

Employees’ base pay (and dearness allowance, if applicable) is increased by 12% each month to account for EPF contributions made by their employers. Workers receive their share of the fund’s corpus when they retire. Employees’ contributions are matched by their employers, with 8.33 percent going into the Employees’ Pension Scheme (EPS).

Except if you elected a higher pension on actual basic pay before the window ended on July 11, 2023, the maximum basic salary that may be used in this computation is Rs 15,000 (which means Rs 1,250 flows into your EPS). After ten years of EPS membership, you become eligible for a pension. You will begin collecting your pension at the age of retirement based on the following formula: [Pension= (pensionable salary (that is, average of last 60 months X pensionable service)/70].

The nitty-gritties of family pension

The Employees’ Pension Scheme, 1995 provides pension benefits not just to the member employee but also to the member’s spouse and dependent children in the event of the member’s death either before or after retirement.

What is family pension?

The pension formula guarantees payments to the pensioner from the time of retirement until the pensioner’s death. If she or he passes away, the pension won’t immediately stop. Any dependents under the age of 25 will be able to share in the pension with the spouse.

Even if the EPS member only made one pension payment before his or her death, the pension will be paid out to the beneficiary. A minimum guaranteed pension of Rs 1,000 per month will be paid to the employee’s spouse in the event of the employee’s death while still employed.

Who is eligible to receive it?

Family members under the meaning of EPS 95 include a spouse and any dependent children under the age of 25. Children that have been officially adopted by EPS members are also included in this description. A ‘widow’ pension is given to the surviving spouse of a pensioner and continues until the surviving spouse remarries or dies. Children’s pension will be converted to an orphan’s pension, which is larger, if the person remarries.

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What if the EPS member is single?

In such a circumstance, the widow’s pension would first go to the dependent father, then the dependent mother. There is no way for a member or retiree to put forth a specific candidate. Only the spouse and children of an EPS member will receive benefits, regardless of whether or not the member is married or has children.

Any beneficiary designation made before marriage will be null and void, and the spouse and any minor children will automatically be named as beneficiaries.

How is pension for the spouse calculated?

She/He will receive up to fifty percent of the pension to which the member was entitled. 25 percent of this ‘widow’ pension will be allocated to the children.

What is the amount of payout made to children?

The monthly pension for children will be equal to 25% of the widow/widower pension. This amount will only be paid until the child reaches 25 years old. Additionally, only up to two children are eligible for this pension at any given moment. If a member’s child is permanently and utterly disabled, he or she will receive the amount for life, regardless of the number of other children in the family.

If both parents are deceased, the ‘orphan’ pension will increase to 75% of the widow’s pension. For children’s pension, a distinct bank account must be established. If both parents were EPS members, these offspring will receive a ‘double’ pension.

What are the documents that the nominees would need to claim family pension?

They will require the pensioner’s death certificate, copies of the beneficiaries’ Aadhaar cards and bank account information, as well as evidence of age documents for children.

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Is the marital status of children taken into account for paying family pension?

No. The only requirement is that they are under 25 years old.

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“Tomorrow or Monday will be my last game of cricket,” announced Broad on Sky Sports Cricket following the third day of play at the Oval on Saturday. “This has been an incredible journey. A tremendous honour to have worn the Nottinghamshire and England ensemble as frequently as I have. I am as passionate about cricket as I’ve ever been, and I’ve always desired to conclude in first place. This series is among the most pleasant entertainment I’ve ever experienced,” he said.

While Broad has stated that he is retiring from cricket, the England and Wales Cricket Board (ECB) has stated that he has resigned from Test cricket. “Stuart Broad has announced his retirement from Test cricket, bringing an end to his illustrious 17-year international career,” it stated.

Broad stated that he made the decision to retire “around 8:30 p.m. last night” after two weeks of deliberation. He informed team captain Ben Stokes on Friday night and the rest of his teammates the next morning. “I had been contemplating it for a few weeks. For me, England versus Australia has been the pinnacle. I have enjoyed fighting against Australia. I am infatuated with the Ashes, and I wanted that to be my final stroke and bowl. I informed Stokesy last night and the locker room this morning. “The timing felt right,” he said.

An all-time great

Broad made his international début against Pakistan in a Twenty20 International on August 28, 2006. Two of his victims contributed to England’s five-wicket defeat. While he was famously hit for six sixes in an over by Yuvraj Singh in a 2007 T20 World Cup match against India a year later, Broad’s reputation continued to rise and he began his illustrious Test career against Sri Lanka on December 9, 2007 in Colombo. Broad claimed one wicket in the form of Chaminda Vaas in the match that ended in a draw in which England bowled only once.

Broad participated in 56 T20Is between 2006 and 2014, accumulating 65 wickets, and 121 ODIs between 2006 and 2016, accumulating 178 scalps. He was a member of the England team that won the T20 World Cup in 2010.

However, Broad’s Test cricket statistics are the most instructive. He currently has 602 wickets, a number he could add to at the Oval as England attempts to prevent Australia from defeating them at home for the first time since 2001. He has claimed 845 wickets throughout his international career. This week, in his final game at The Oval, Broad claimed his 150th Ashes wicket, joining Anderson as the only two fast bowlers in history to surpass 600 Test wickets for their country.

Broad’s career has been inextricably linked to the Ashes. His combative nature has frequently prompted the Australian media to label him “Public Enemy No. 1.” He is England’s leading wicket-taker against Australia, having become the first player from his nation to surpass 150 in the contest. His current total is 151, and he still has a chance to surpass Glenn McGrath’s record of 157. He is currently the third highest wicket-taker in Ashes history, behind McGrath and the late Shane Warne, who claimed 195 wickets.

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His career-defining spell occurred in the 2015 Ashes at Trent Bridge, his domestic home ground, when he claimed 8/15 in 9.3 overs to dismiss Australia for 60. Broad’s eight five-wicket hauls are the most by an England player in the Ashes since before World War I.

The post After 2023 Ashes, England legend Stuart Broad retires. appeared first on Republic Aeon.

• Financial Retirement,
• Lifestyle choices.

The former includes how much money has to be invested in the future to lead a secure and satisfied life with your soulmate beside, to comfort one’s thoughts, actions, and everything around, whereas the latter, involves questions like ‘Where to settle down?’, ‘when to quit altogether?’, etc. 

Retirement Planning is a topic that should be introduced in regular textbooks and curriculums besides other ordinary subjects to instill the concepts of ‘Wealth Management’ in each student from the time they are young. 

The process of retirement planning for different people changes with time, location, and mindset. The retirement planning of an Indian is way too different from the one in Canada or Mexico. This is because of the different laws, systems, and plans offered at different workplaces. 

There are different financial plans that retirement can be planned based on, like Mutual Funds, Bonds, Physical Assets, Stocks, Exchange Traded Funds, etc. 

What is Retirement Planning?

The whole process of Retirement Planning involves setting income targets and investing diligently in various investment plans to achieve a specific objective before one retires. 

If one wants his/her old age to be a bed of roses, making the best memories with their better half, children, and grandchildren, then one has to slog and set desirable financial targets from his early 20s till the fag end of 50s. 

Therefore, a meticulous choice of investment plans and investment advisors is very important to have one on the right path to having a secure life. 

Why is Retirement Planning important? 

Retirement Planning is very significant to ensure the same kind of lifestyle that one lives pre-retirement. Income from the investments made can be used to help oneself and the rest around when in need. 

The major importance of planning for a retirement investment is as follows, 

• To Address Unforeseen Contingencies

     Since the future is filled with major uncertainties like fragile health, demise of better half, emotional imbalance, and deteriorating physical health, only money can help one sustain. With the ballooning medical costs and expenses on medicines, it is important to opt for a meticulous plan that can cover all the uncertain expenditures that might arise for an individual and the spouse. 

• To Fight The Galloping Inflation

Inflation is always not going to be the same. The rate of inflation tomorrow is certainly going to be higher than what it is today. Anticipating changes in the economy and lifestyle is not always what an individual can do. When most of the things are out of control, saving for the future alone can be done efficiently. 

• Can be your grandchildren’s favorite people

It would be amazing to spend time and money for them by taking them on a vacation and hosting them with good food. Grandparents feel overwhelmed when the kids thank them for a gift. Money should never be an obstacle to getting close to loved ones and making them feel happy. 

• Social Investments

It is important to care for needy people around. One can trigger his generous instincts and give away a part of his savings to poor people and enhance their living standards. 

To find happiness in retirement and enjoy life to the fullest, money should never be a constraint. For this, financial planning is the most significant step. 

Which Retirement planning is the best in India?

With numerous pension plans available in a country like India, it is important to choose what suits an individual and save money in equal intervals so as to ensure a secure post-retirement life. Some of the retirement plans are listed below.

• Max Life Guaranteed Lifetime Income Plan
• SBI Life Saral Retirement Saver Plan
• LIC New Jeevan Shanti Plan
• BajajAllianz Life LongLife Goal
• India FirstLife Guaranteed Annuity Plan
• ABSLI Empower Pension Plan 
• Kotak Premier Pension Plan
• Tata AIA Guaranteed Monthly Income Plan
• LIC Jeevan Akshay –VII Plan

The above listed are the retirement investment plans offered by the private sector, there are abundant plans from the government sector too. Some of them are, 

• Atal Pension Yojana
• National Pension System
• Pradhan Mantri Vaya Vandana Yojana
• Varishtha Pension Bima Yojana
• Indira Gandhi National Old Age Pension Scheme

A note to consider here is that possessing a varied portfolio of retirement investments is very important to diversify the risks. Senior Citizens Savings Program, Post Office Monthly Savings Program, Debt Funds, and Tax-Free bonds are the best retirement investment portfolios in India. 

What Is The Process Of Retirement Planning In India?

Instead of taking big steps overnight. Taking baby steps towards accumulating a retirement corpus is more sensible. Though the process of retirement planning is a cakewalk, following a disciplined approach is a prerequisite. Some of the steps are listed below. 

• Determining The Age Of Retirement

Though the most common age of retirement is 60, most of them wish to retire early. On the other hand, most of the workaholics work after retirement. So getting to know the time frame and acting accordingly is very important. Also, based on medical history, it is important to anticipate the age till which one might live, not considering they one might die in a fatality. 

• Early Start For a Blissful Retirement

To not compromise on goals and have a smooth retirement, it is important to start off early. The early 20s till early 30s is the right time to think about building a retirement corpus. Some of the steps an individual should follow at this age are to Estimate a rough figure for retirement, Build a contingency fund, Take a Health Insurance policy, Regular investments, etc. 

• Calculate What An Individual Today’s investment would be Tomorrow. 

Understanding how the economy works is important to accomplish this step. The best way to save is to earmark a certain percentage of the earnings towards retirement and left undisturbed. To know this, one should understand what a Rate Of Return is and learn to obtain the figures. 

• Having A Watch On the Expenditure

An individual should learn to cut down on one’s unnecessary expenditures and be meticulous in accomplishing financial objectives. 

Seek Advice From A Financial Planner

Since retirement planning is an exhaustive and elaborate exercise, is it important to seek professional help. They will help an individual with the allocation of funds, streamlining investements and checking their relevance with regards to the current market.

Retirement Planning With Mutual Funds

Like how you think the love you show to people should be reciprocated back to you, the investment you make should give satisfactory returns. Return On Investment is the most important feature of the entire process of wealth creation. 

Mutual Funds are a form of retirement investment plan that exposes an individual to various assets and sub-asset classes. Prior data show that MFs are preferred by most senior citizens as a potential investment plan. 

If an individual had planned an investment where he had parked money in NIFTY 50 TRI through SIP, there would have been a CAGR of 10.3% and a corpus of 2.7 crores with a monthly investment of 1.2 lakhs. 

Retirement Planning Calculator In India

Calculating Retirement corpus has become a part and parcel of all people. Of late with a dynamic working environment and the business cycle, meticulous calculation of finance is very important. 

So of the benefits of learning the art of Calculating Retirement Planning are listed below

• Offers an overview of one’s financial condition
• Comparison can be drawn between different choices available in the market

Using a financial calculator in India doesn’t require much of one’s time and knowledge. If inputs are given, figures that have to be saved will automatically show up. 

Best Pension Plan In India

With a plethora of Retirement plans available in India, one might get confused about where to invest. At the same time, it is important to know where not to invest so as to not messing up the plan. Some of the best retirement plans in India are as follows

• Aditya Birla Sunlife Empower Pension Plan
• Aegon Life Guaranteed Plan
• Aviva Next Innings Pension Plan
• Bajaj Life Long Goal Pension Scheme
• Canara HSBC Invest 4G Whole Life
• Edelweiss Tokio Life- Wealth Ultima

Most of them at this stage get doubt whether they will get the same interest rate that they are assured of, by the above-mentioned plans. Here comes a major turning-point-Section 80ccc.

What is Section 80 CCC?

This section comes under the Income Tax Act of 1961. It provides exemptions of up to 1.5 lacs pa for the amount of contribution that an individual makes towards a particular pension plan. 

The Terms and conditions one must follow to avail of the benefit are:

• A bonus received is not eligible for exemption under Section 80CCC
• An amount parked before April 2016 is not eligible
• Monthly Pension one gets from the policy is to be taxed
• Any rebates on investment in plans before April 2006 are not allowed

Why is Financial planning important?

Financial Planning is one of the most important aspects in a person’s life to see only smiles around and wink at sorrows and grief on your way. Financial planning is a subject that has to be incorporated into school and university syllabi to bring awareness among the millennials and have a safe journey and make happy memories with their family.

Financial Planning is the most important step to ensure there is a healthy cash flow at home without unnecessary expenditures, better investment planning, continuous rate of interest from the investment portfolio, guarded against the shackles of running inflation, etc. 

Financial planning and financial literacy are like two edges of a sword. A sword would be of no use if one of the two is missing. Likewise, life will get useless and filled with tears and pain if the two are not done efficiently. When there’s only one life to live, why fret about learning this absolutely enjoyable art of financial planning? 

Also Read| Budget 2023: Expect standard deduction and 80C limit increases

FAQs

1. What is retirement planning?

Retirement planning is an important step in financial planning that helps one achieve long-term financial targets so as to lead a peaceful retirement life.

1. What are the different types of retirement plans available in India?

• Atal Pension Yojana
• National Pension System
• Pradhan Mantri Vaya Vandana Yojana
• Varishtha Pension Bheema Yojana
• Indira Gandhi National Old Age Pension Scheme

While the above are the government-offered retirement plans for senior citizens, 

• Max Life Guaranteed Lifetime Income Plan
• SBI Life Saral Retirement Saver Plan
• LIC New Jeevan Shanti Plan
• BajajAllianz Life LongLife Goal
• India FirstLife Guaranteed Annuity Plan
• ABSLI Empower Pension Plan 
• Kotak Premier Pension Plan
• Tata AIA Guaranteed Monthly Income Plan
• LIC Jeevan Akshay –VII Plan

These are the private Retirement plans available with private players in the market.

1. Why is financial planning important? 

Financial planning is an art everybody has to learn to ensure the adequacy of funds, healthy investment, to cover against uncertain events, and ensure financial growth in a family. 

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