![]() ![]() As it does not pay the lumpsum amount it is important to consider how long will one need the pension amount. “While giving up the EPF money towards EPS there has to be sufficient other wealth to take care of health care, among other things," said Vishal Dhawan Founder and CEO Plan Ahead Weath Advisors.Īnother reason to consider is your life expectancy. I can opt for the return of purchase price /same amount of pension to go my nominee/beneficiary and post that a lumpsum can go the beneficiary," said Shantala Kumble, Senior Vice President, International Money Matters, a SEBI-registered investment advisor. In comparison to this I can decide the type of annuity I want at retirement. ![]() Post that there is no lumpsum that is paid to the beneficiary of the spouse. In EPS, when the person passes away 50 per cent of that amount is paid to the spouse. The main reason is flexibility which comes with choosing of an annuity scheme at retirement. “I would suggest people stay put and not opt for higher contribution to EPS. The spouse receives 50 per cent of the pension amount after the subscriber passes away. You only receive pension amount based on your pensionable salary at the time of retirement (average of 60 months ) and pensionable service. While taking the decision it is important to understand that you do not receive any lumpsum amount under EPS. The question, however, arises if one should opt for the higher contribution under EPS. ![]()
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