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 Court docket ruling in Nov 2022. The Supreme Court docket 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 price”? What’s the trade-off?
Do you have to go for the improved pension choice?
Think about 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 implies, the EPF corpus will scale back. You make the contribution for this more money.
2, When you give cash to EPS, it’s gone, without end. The EPS mandate is to solely provide a pension. To you, first, after which after loss of life, 50% of the pension to your partner. If each of you and your partner are not any extra, there may be nothing paid out to the heirs.
Even when the pension is paid out for only a few years.
Not like EPF or NPS and different pension schemes, the place there may be an choice to get your capital contribution transferred to your heirs/nominees.
Easy query – Are you able to do higher with management of your individual cash?
With all the present funding choices accessible right now, you possibly can design your individual pension.
That’s my restricted understanding. If I’m lacking any specific element, please do enlighten or share a useful resource.