MUST-KNOW FACTORS FOR SECURING YOUR FINANCIAL FUTURE
Published By MintGenie Team | 17 Apr, 2024
Understanding the latest pension rule clarifications from the EPFO can greatly benefit employees in securing their financial futures through retirement savings promotion.
Here are some areas on which the EPFO has offered clarification:
Eligibility for Pension
Criteria such as minimum service tenure and age prerequisites determine eligibility for pension, with options for early or postponed pensions available.
Credit : UNSPLASH
Calculation of Pension Amount
The EPFO outlines how salary, employee and employer contributions, and length of service influence the eventual pension sum, providing clarity on pension calculation.
Credit : UNSPLASH
Other Benefits
EPFO regulations may cover survivor benefits, withdrawal options, and nomination procedures, offering additional clarity to account holders.
Credit : UNSPLASH
Deferred Pension Incentive
Account holders contributing for at least 10 years become eligible for a pension at age 58, with an option to delay until age 60 for an increased pension amount of 8% per year deferred.
Credit : PIXABAY
EPS and PF Allocation
8.33% of contributions are allocated to the EPS, providing a pension benefit post-retirement, while the remaining 3.67% contributes to the PF, building savings for the employee.