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After the job, everyone is worried about their retirement life. Some people are already planning their retirement life and investing in good funds. Government employees are given all kinds of benefits including pension from the government. But, if you work in the private sector and want to secure your life after retirement, then you also have many plans. We are telling you about 5 such pension schemes of the government, which provide you financial security after retirement. Also, helps in saving tax.
Employees Pension Scheme EPS
Provident fund ie PF is a big support for employed people. PF account also provides pension facility. The employee contributes 12% of his salary to EPF. The same amount is also given by the employer. However, 8.33% of the contribution of the employer is deposited in EPS. If you want to take advantage of pension facility, then it is necessary to contribute to EPS for at least 10 years. This means that you have done 10 years job and maximum pensionable service should be 35 years. However, at present the maximum pensionable salary is considered to be Rs 15,000. This makes the pension share maximum Rs 1250 per month. If you are a private sector employee and you also have an EPS account, then you will get a certain amount in the form of pension after retirement.
National Pension System NPS
The second place in this list is the national pension system. NPS is a scheme launched by the Government of India in 2004. Its purpose is to provide people a stable and reliable income after retirement. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Initially, it was only for government employees, but in 2009 it was opened to all Indian citizens. In this, the investor can invest in equity, government bonds and corporate bonds as per his choice. There is a tax exemption under Section 80CCD of the Income Tax Act on investing in NPS. After the age of 60, the investor can withdraw 60% of the amount, while the lifetime pension starts at 40%.
Atal pension scheme
If you are also looking for a pension scheme in which you can be entitled to lifetime pension by giving less premium, then Atal Pension Yojana is a good option. Under this pension scheme, at the age of 60, one gets pension of Rs 1000 to Rs 5000 per month. This is a pension scheme of the Government of India. This scheme is for Indian citizens between the ages of 18 and 40 who have a bank account. The objective of this scheme is to provide income through unorganized sector workers in old age. Any person aged 18 to 40 can open Atal Pension Yojana account. In order to get pension of Rs 1 thousand to Rs 5 thousand per month in Atal Pension Yojana, the applicant will have to invest Rs 42 to Rs 210 per month. To invest so much, you have to take this plan at the age of 18. The maximum contribution is 5 thousand rupees.
Honorarium scheme
The government has launched the Pradhan Mantri Labor Yogi Maandhan Yojana to provide economic security to the people of the unorganized sector. Under this scheme, the government provides pension of Rs 3000 per month to workers with income less than Rs 15,000. The scheme was launched in 2019. The scheme is for workers working in the unorganized sector. This includes domestic workers, street vendors, drivers, plumbers, tailors, mid-day meal workers, rickshaw drivers, construction workers, garbage pickers, bidi makers, handloom weaver, agricultural laborers, cobblers, washer, leather workers. Under this scheme, unorganized sector workers get a pension of Rs 3000 after the age of 60 years. Under this scheme, the government adds as much contribution as the beneficiary contributes every month. If your contribution is 100 rupees, then the government will also add 100 rupees to it.
Atal Insured Person Welfare Scheme (ABVKY)
Atal sick person is a scheme run by Kalyan Yojana, ESIC. This staff provides financial assistance to the insured people under the State Insurance Act, 1948 in the event of unemployment. Under this scheme, if an employee’s job is lost, he gets 50% unemployment allowance of monthly salary for a maximum of 3 months. This scheme is for those insured people who fall under the ESI Act, 1948. Those who have done insured employment for at least 2 years. Has contributed at least 78 days in 12 months before unemployment.
Which scheme is best for you?
The five pension schemes are good for every category. The Atal Pension Yojana and the honor scheme are for the employees of the unorganized sector. Whereas, NPS and EPS are for salaried classes. If you compare both, then in many cases NPS can prove to be more beneficial. Being connected to the market, this retirement funds help to deposit quickly. It provides tax benefit of up to Rs 2 lakh annually. There is a possibility of getting more returns from EPF and PPF. This pension is preserved by the regulatory authority. It costs less than other investment options, which gives you more returns in a long time. When you turn 60, you can withdraw a tax-free of Rs 60 per cent under it. Whereas, 40 percent of the money is used for pension, which keeps you having a certain income every month.
