Categories
Browse By Products
Investments
Articles

Secure Your Life after Retirement by Choosing best Retirement Plan

Retirement is the period once an individual completes one’s regular career life and prefers to stay home after the working life. This happens to one in employment or in similar regular career assignments, after one attains a particular chronological age. The retirement age in India is normally 58, sometimes taken to higher age levels according to the Standing Orders or internal regulations of the Company or the position one is engaged. For instance, retirement age for certain positions go upto 65, such as those of Judges and persons of similar stature. Retirement age is also referred as superannuation.

During retirement period one will not be having the regular earnings which the individual must have been receiving during regular work life, which means, the individual must have some source of income to make one’s livelihood during retirement. For this purpose, every individual in career life chooses any of the retirement plans, which would provide resources for living during retired life comfortably.

Retirement plans

Among the popular retirement plans in India, Employees’ Provident Fund Scheme occupies a predominant position, which is applicable for all persons in organized employment situations, Government Employees under a particular pattern and non-Governmental Enterprises covered under the legislation involving contribution from both employees and employers in equal proportion, which is up to 12% of one’s wages or salary.

While Government employees are provided with monthly Pension on retirement as per their condition of employment, private enterprises offer different pension plans, which would include LIC Annuities bought on retirement from Superannuation Funds they opt to maintain.

General Insurance schemes, apart from Life Insurance plans, which involve monthly or periodical remittances during a particular term, offer lump sums or regular income during retirement period, which also come under retirement plans what one in career life can choose to take.

Employee’s Pension Scheme

The Employees Provident Fund and Miscellaneous Provisions legislation has provided an exclusive scheme coming under pension plans, under its Employee’s Pension Scheme, 1995, which provides payment of pension under a particular formula based upon the last drawn monthly salary and years of pensionable service rendered, with a factor applied on them. In this scheme, the employee makes a contribution to the fund during one’s service and the employer also pays a matching contribution. An employee who has rendered 10 years of pensionable service and has retired on superannuation at the age of 58 years, gets full benefit, others getting early pension benefits which are correspondingly variant according to years of service rendered.

We at Money Super Bazaar

Making money is an interesting job but seeing it grow by making right investments is even more fascinating. Welcome to the world of "MONEY SUPER BAZAAR" where the effort is to help our readers in making smart investments by providing them details about best mutual funds, stocks, bonds and other money making alternatives.

Looking to apply for a credit card or searching for the customer care number of any financial institution in India, we have all the details to assist you in making your life easier.