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.
Effectively, 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?
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’re making the contribution for this more money.
2, When you give cash to EPS, it’s gone, without end. The EPS mandate is to solely supply 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 aren’t any extra, there may be nothing paid out to the heirs.
Even when the pension is paid out for just some years.
In contrast to 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 personal cash?
With all the present funding choices out there as we speak, 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.