Before we get into the nitty-gritty of investments, it's important to understand what a "good" retirement looks like to your parents.
The CPAO's new guidelines are expected to streamline the NPS pension processing, aiming to address the long-standing issue of delayed pension approvals that have been causing financial uncertainty for retired employees.
The EPF enables contributors to build a substantial retirement fund, ensuring financial security once they exit the workforce.
Unemployed individuals are eligible to open accounts under the National Pension System (NPS). Despite lacking a current source of income, individuals can establish an NPS account using existing savings.
While UPS offers a guaranteed pension with lower risk, NPS offers market-linked returns with higher risk.
EPFO pension provides a secure financial future and removes market uncertainties, making it an ideal selection for individuals looking for a steady and guaranteed income. With life expectancies on the rise, typically reaching 70-75 years, this alternative offers lasting advantages without the need for continuous financial oversight.
She also predicted the collapse of dual employment laws, making it harder for professionals to rely on a single salary.
In February 2025, six banks adjusted senior citizen fixed deposit rates, offering up to 9.1% amid a 0.25% RBI repo rate cut. This move affects deposits under Rs 3 crore, impacting post-retirement finances.
The Finance Bill 2025 has introduced a new tax regime starting from the financial year 2025-26, making income up to Rs 12 lakh tax-free for individuals. This change means that senior citizens with total income, including those from SCSS, below Rs 12 lakh will not be required to pay any taxes.
The Bajaj Allianz Life Guaranteed Pension Goal II features various annuity options, including life annuity, joint life annuity, and return of purchase price (ROP) choices. Policyholders have the flexibility to personalise their ROP selection, with options ranging from 50% to 100%, giving them increased control over their annuity amount.
The PFRDA has cautioned that scammers may attempt to deceive individuals by falsely using its name and NPS brand through various means such as SMS, calls, emails, websites, mobile apps, and social media platforms like Facebook, WhatsApp, and Telegram. These deceptive tactics could result in cyberattacks and financial losses.Â
The UPS will be available to central government employees who are already enrolled in the NPS and opt for this new scheme. The Finance Ministry has stated that eligible central government employees under the NPS now have the choice to switch to the Unified Pension Scheme within the NPS framework.
The growth rate of NPS assets under management (AUM) has decreased, with a year-on-year increase of 23.33% to reach Rs 13.88 lakh crore. This growth rate is lower than the 25.49% year-on-year increase reported by the end of December at Rs 13.69 lakh crore.
RBI Repo Rate: With banks expected to lower FD rates in response to cheaper borrowing costs, returns on deposits could shrink in the coming months.
Ahluwalia credits his success to a three-pronged strategy—career growth for higher earnings, disciplined saving through delayed gratification, and strategic equity investments.
For senior citizens investing in fixed deposits, the threshold for TDS on interest income exceeding Rs 50,000 was raised to Rs 1 lakh starting from FY 2025-26.
Under this new pension scheme, government employees will be required to contribute 10 per cent of their basic salary along with the dearness allowance, while the government will contribute 18.5 per cent. In addition, there will be a separate pooled fund supported by an additional 8.5 per cent from the government.
The Centre introduced the Unified Pension Scheme (UPS) for central government employees last year, combining elements from both the Old Pension Scheme (OPS) and the National Pension System (NPS).
Last year, the gratuity ceiling for central government employees was raised to Rs 25 lakh, taking into account the Dearness Allowance (DA) reaching 50% of their basic salary.
In a recent post on X, Akshat Shrivastava, the founder of Finfluencer and Wisdom Hatch, raised concerns about the assumption made by investors regarding the current capital gains tax rate of 12.5% staying constant in the long term. He pointed out the potential impact on the final retirement corpus if the tax rate is increased after 10 years.
One should note that the performance of NPS is correlated with the market and varies based on your allocation among equity, government securities, and fixed-income options. In the long run, NPS has the potential to provide higher returns compared to EPF, which offers lower but steadier returns.
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