Provident Fund account holders get many benefits on their account. A big benefit of these is available in the form of pension. After retirement, pension is paid under EPS-95. But, there are many rules of EPFO, which are hardly known to the subscribers. One of these is the rule of pension to parents. Actually, the pension received by the subscribers is not only theirs. But so are the dependents. If a subscriber dies during the job, then his family, especially the parents, gets pension.

The EPFO ​​says that the department stands fully with such elders on the loss of their employed son or daughter. As per EPFO ​​rules, such parents who have lost their employed child get lifelong pension. However, it has some terms and conditions.

Parent and subscriber will get pension on these conditions (Pension rules)

The Pension Scheme (EPS) of EPFO ​​was started in 1995. According to the EPFO, if a person dies while on the job, who is the sole breadwinner in the family and his parents are dependent, then in such cases he gets lifelong pension under the EPS-95 rule. However, the condition in this is that the employee has completed at least 10 years of service. Also, if the employee becomes physically disabled due to any disease during the job, then the employee will also continue to get pension for life. Even if he has not completed the tenure of the job (10 years) as per the conditions.

How much contribution is there in PF account? (Contribution in EPF Account)

12 percent of the basic salary and dearness allowance of the employee is deposited in the Provident Fund account. The same part is also deposited by the employer’s company. On retirement, the employee gets the entire amount of the fund by charging interest. 12% of the employee’s share is deposited directly into the EPF account. At the same time, out of 12 percent of the employer, 3.67% is deposited in EPF and the remaining 8.33% in EPS (Employee Pension Scheme).

How to Calculate Pension (Pension Calculator)

• The initial process of Pension Calculator is the same as that of EDLI Calculator. After coming to the page of the pension calculator, the process is given below
• you have to enter your date of birth. Along with this, you will have to give details like joining, leaving, etc. After this click on Show / Update details.
• After this the system will show you the date of completion of 58 years of age, 50 years of age for early pension and pension starting date for monthly pension amount.
• You can get early pension after the age of 50, but the pension amount will be reduced. At the same time, at the age of 58, you will get the full pension benefit.
• You enter the pension starting date and salary for pension in the calculator and click on Show / Update details. The system will show you your superannuated monthly pension amount.

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Everyone worries about old age expenses. If you also want that your old age is safe and you do not have any problem with money in old age, then you should start planning in advance. You should start saving money for retirement only on the day your job starts. Actually, the sooner you start saving, the more money you will get till retirement. There are many investment options available to you for accumulating retirement funds like EPF, NPS, stock market, mutual funds, real estate etc.

Government is running many schemes

To secure your retirement, the central government has made many schemes, where you can invest. If you are employed, then you must also think that when you retire, you will get a huge amount every month in the form of pension. But for this you have to invest from today itself, so that after 60 years your old age can be secure.

What is NPS Scheme

National Pension System (NPS) is a government pension scheme consisting of both equity and debt instruments. NPS gets a guarantee from the government. You should invest in NPS scheme to get higher monthly pension after retirement.

Income tax exemption

NPS pension scheme is a government scheme like Public Provident Fund (PPF), Employees Provident Fund (EPF), Sukanya Samriddhi Yojana etc. In this, any investor can also increase his monthly pension amount by making the right use of maturity amount. Through NPS, you can save tax up to Rs 2 lakh annually. You can save tax up to a maximum of Rs 1.5 lakh under Section 80C of Income Tax. If you invest in NPS, you will get an additional tax exemption of up to Rs 50,000.

Will get monthly pension of Rs 2 lakh

If you deposit 5000 rupees every month for 40 years in NPC, you will get 1.91 crores. After this you will get 2 lakh monthly pension on investment of maturity amount. Under this, you will also get a monthly return of Rs 1.43 lakh and Rs 63,768 from the Systematic Withdrawal Plan (SWP). In this, a monthly pension of Rs 63,768 will continue to be received from the annuity till the investor is alive.

Monthly pension of Rs 63,768 in 20 years

If you invest Rs 5000 every month from 20 years to retirement, then you will get a lump sum maturity amount of 1.91 crores to 1.27 crores. After this, you can get a monthly pension of Rs 63,768 per month at Rs 1.27 crore with 6% return.

There are two types of NPS There are two types of NPS, NPS Tier 1, and NPS Tier-2. The minimum investment in Tier-1 is Rs 500 while in Tier-2 it is Rs 1000. However, there is no maximum limit for investment. There are three investment options available in NPS, in which the investor has to choose where his money will be invested. Equity, Corporate Debt and Government Bonds. With more exposure to equities, it also gives higher returns. Keep in mind that you should do any investment only after talking to your investment advisor.

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