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…

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…

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…

This article explains how to calculate the revised EPS pension assuming the contribution is 8.33% of their basic + DA. After the recent supreme court ruling on the Employee Pension Scheme (EPS), EPFO subscribers, as of 1st Sep 2014, can retrospectively contribute 8.33% of their basic + DA to the EPS via a deduction from…

After the recent supreme court ruling on the Employee Pension Scheme (EPS), EPFO subscribers, as of 1st Sep 2014, can retrospectively contribute 8.33% of their basic + DA to the EPS via a deduction from the EPF. The option to do this has been opened only to a section of employees and is expected to…

A reader says, ” I am 45 years old and am doing well. My company recently shut down operations in India, and I have been offered a hefty severance package. I wanted your advice on generating 10% annual returns ( or the best returns possible)”. “Here is my financial status: Severance package: 70 Lakhs Self-owned…

A reader asks, “I am aged 60 and have just retired. My total corpus is close to Rs. One Crore, but my monthly expenses are slightly over Rs. 40,000. This means my initial withdrawal rate = annual expenses divided by corpus is about 5%.” “This is higher than the “old” safe withdrawal rate estimate of…

Prakash is 35 and wishes to retire by 55. In this case study, we shall find out how he can plan for financial freedom in retirement.  That is, we shall find out how Prakash can derive an inflation-protected income and be financially free after retirement. What is inflation-protected income? This is a retirement income that…

A reader asks, “Can you please write an article on how to decide the inflation rate while planning for retirement?”. This question has troubled me long and hard over the years, and I think I have finally arrived at an answer: “Use the rate that will work for you”! This response may seem arbitrary to…

There is more to retirement planning than beating inflation, investing enough and managing the corpus post-retirement. When we just start investing for retirement, everything seems a blur.  The corpus seems impossible. The amount we need to invest seems impossible. However, the corpus does not seem as steep with time, discipline and some luck. The investment…

Over the last decade, the number of capital market participants (stocks or mutual funds) has increased sharply. Retirement corpora have gradually shifted from 100% fixed-income to higher and higher equity exposure. This shift implies both retirees and advisors must be mentally prepared to face big challenges. An extended rate cut for a good part of…

A reader says that he has realized the importance of retirement planning only at age 35 and his current net worth is essentially zero. He would like to retire by age 55 and wants to know how to go about it. With twenty years to go, there is a good chance of accumulating enough corpus…