This is the archive of all our articles related to retirement planning
Further extension of the deadline to opt for a higher pension under the Employee Pension Scheme (EPS) has been extended to June 26, 2023. So, the subscriber of EPFO has a month to decide whether to opt for a higher pension scheme from EPS. The objective of this article is to help you determine the…
Continue reading →A reader says, “I am a regular reader of freefincal. I am wondering whether I will be able to be financially independent in the next 20 years. My Background: I am 34 years old and working for an MNC. My wife is a homemaker; she is 31 years old. We have a three-year-old daughter”. Expense…
Continue reading →One quesion many readers ask is, if I already have a pension, how should I plan for retirement? A user of our robo advisory tool writes, “I am studying and trying to understand the robo advisory tool. In the income flooring sheet, annuity laddering and DIY Bucket, I found that annuity is needed to be purchased”….
Continue reading →With the deadline to opt for a higher EPS pension shifted to June 26, 2023, subscribers have some time to evaluate the decision. A reader with 15 years of service in a PSU wants to know if an EPS pension will benefit him. He estimates that he has to shift about 13.5 lakhs from EPF…
Continue reading →A reader says, “You mention in multiple articles such as – How much equity should I hold after retirement? – An equity allocation of not more than 30% for typical retirements is recommended.” “Can you write/update an article explaining if/how this 30% number would change based on someone’s current corpus (as a multiple of annual…
Continue reading →A reader says, ” Thank you for the Robo Advisory Tool. It has given me insight into my retirement plans. A query: As we can recall, monthly expenses during the year 2002 were approximately Rs.10,000/- p.m. In 2022, our expenses escalated to Rs.1,00,000/- p.m. (in 20 years)”. “The Retirement Corpus calculated in the year 2002…
Continue reading →A reader says, “I’m 57 and on the verge of retirement and in IT, can I opt for a higher EPS pension?” As regular readers may be aware, we have discussed this topic at some length: Higher EPS Pension: Should those who retired recently or are about to retire opt for it? Can I opt…
Continue reading →A reader tweeted, “I am working in one of the best PSU of India, current Basic+ DA is 125k with 8% increment/ yr. Natural retirement year is 2046. To choose EPS, i have to deposit 12 lakhs from my PF. Is it good to join EPS?” First, the good news. Subscribers now have up to…
Continue reading →The higher EPS pension proposed for those eligible is approximately 50% of the last drawn pay, as is the norm in government establishments. However is this enough? The short answer is, nope! Here is a set of retirement planning slides that I used at investor workshops. The aim is to convey the importance of retirement…
Continue reading →Many EPFO subscribers who retired after Sep 1st 2014, or are still in service have the incorrect impression that they will automatically be eligible for higher EPS pension. This is incorrect, as clarified by the EPFO circular issued on Feb 20th 2023. According to point no 5 of the circular: “5. Therefore, in compliance of…
Continue reading →Many organisations part of the EPFO are abuzz with discussions and calculations on higher EPS pensions following the Supreme Court’s verdict. Many have even provided deadlines to employees currently in service to opt for a higher EPS pension by transferring a significant portion of their EPF corpus to the EPS. However, at the time of…
Continue reading →A reader asks, ” I am 45 years old with a corpus of around 2.5cr distributed across equity (MFs + stocks) and fixed assets (Bank Savings+Debt Funds+SGB+EPF). I worked for a niche media industry and lost my job in 2020 when Covid hit.” “With few opportunities locally, finding suitable positions has been difficult, especially with…
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