There have been a number of hurried messages about whether or not to decide on the improved pension from EPS as per the latest Supreme Courtroom ruling in Nov 2022. The Supreme Courtroom set deadline – March 3, 2023 – with little readability from EPFO has added to the nervousness.
Nicely, the concept of additional pension sounds good. The one query that must be requested is “at what value”? What’s the trade-off?
Do you have to go for the improved pension choice?
Take into account the next 2 factors earlier than you do.
1, This isn’t a free lunch. You’re transferring funds out of your EPF corpus to get the improved pension. Which suggests, the EPF corpus will scale back. You make the contribution for this extra cash.
2, When you give cash to EPS, it’s gone, eternally. The EPS mandate is to solely provide a pension. To you, first, after which after demise, 50% of the pension to your partner. If each of you and your partner are not any extra, there’s nothing paid out to the heirs.
Even when the pension is paid out for only a few years.
In contrast to EPF or NPS and different pension schemes, the place there’s an choice to get your capital contribution transferred to your heirs/nominees.
Easy query – Are you able to do higher with management of your personal cash?
With all the present funding choices out there at this time, you may design your personal pension.
That’s my restricted understanding. If I’m lacking any specific element, please do enlighten or share a useful resource.