Many private sector employees want to set aside a portion of their wages, invest it, and reap the benefits. The goal? For a trouble-free life after retirement. The most appropriate investment tool for this is a PF account since it provides great return and pension needs under the EPS-95 program. However, it is important to note that there are a few requirements that one has to fulfil in order to access pension benefits.
Like most governmental pension schemes, the EPS is slightly complicated in many people’s estimation. In other words, it is a pension plan that is administered by EPFO (Employees’ Provident Fund Organisation). Before you can enjoy pension benefits, it is mandatory to have worked for not less than 10 years. Once you get to this point, you get a pension once you retire.
What is EPS-95
EPS-95 was started on November 19, 1995, as a measure to aid the employees of the organized sector to provide for retirement. The scheme provides for pension after the age of 58 years. For instance, if you have been working for 9 years and 6 months you will be deemed to have worked for 10 years for pension purposes.
How PF contributions work
A portion of the employee’s basic salary with DA of 12%, every month is credited to the PF account. Out of this, 8.33% of your employer’s contribution goes towards the pension scheme, ensuring you’re building a retirement fund.
Did they have any unemployment periods or worked at several companies at different periods? No worries! Even so, you can still take the pension if you have done 5 years with one company and another 5 years elsewhere. The only thing to note here is to maintain the UAN (Universal Account Number) from when you begin your working practice.
To summarize, EPS-95 is a perfect solution to provide pension and therefore financial security when you no longer work.
Secure your retirement with EPS-95. Work for 10 years to qualify for a guaranteed pension and financial peace post-retirement. Get to know everything in detail here. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
