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Ramalingam

Ramalingam Kalirajan  |4060 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Feb 01, 2024Hindi
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Hi, I am about 50 years old, having a EPFO account, Can I claim for early pension at 50 years, if I am unemployed ,Please advice

Ans: Early Pension from EPFO at 50? Let's explore your options.
Thinking about early pension? That's a big decision! Here's what you need to know about the EPFO and early pension:

Eligibility for Early Pension:

The Employees' Provident Fund Organisation (EPFO) allows early pension, but there's a catch!

You can withdraw your EPF corpus and claim a reduced pension if:

You are at least 50 years old.
You have completed 10 years of service.
Reduced Pension:

Choosing early pension before the standard retirement age of 58 means a lower pension amount.

Your pension is calculated based on your salary and service period. With early withdrawal, the calculation considers fewer years, reducing the final pension amount.

Are you unemployed?

Being unemployed doesn't affect your eligibility for early pension if you meet the service requirement (10 years).

Before you decide:

Early pension reduces your monthly income. Consider your financial needs and other retirement savings.
A lower pension can impact your long-term financial security.
Consulting a Certified Financial Planner (CFP) can help:

They can assess your situation and recommend the best course of action based on your goals and financial health.
They can help you understand the impact of early pension on your retirement income.
Remember:

Early pension is an option, but it comes with reduced benefits.
Careful planning is crucial to ensure a comfortable retirement.
I hope this helps!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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HR, Workspace Expert - Answered on Feb 29, 2024

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Sir thank you for your prompt reply. I have the following queries: 1. As I have completed 10 years of service, can I still withdraw complete EPS amount. 2. For getting pension immediately after retirement as I understand I need to fill form 10D. Can this form be filed online also. 3. After I retire when should I submit the form 10D to EPFO Office to start getting pension. 4. I would be retiring on 30th April 2024 so for how many years can I earn interest on my EPF Account without withdrawing it and what would be my last date by which I should apply for the claim. 5. While applying for the EPF Account after the maximum extended period possible can I apply for the claim online. Thanking you in advance.
Ans: Certainly! Let’s address your queries regarding the Employees’ Pension Scheme (EPS) and the process for pension withdrawal:

EPS Withdrawal After 10 Years of Service:
If you have completed less than 10 years of service or have attained the age of 58 years (whichever is earlier), you are eligible for lump-sum withdrawal from your EPS account.
However, if you have completed 10 or more years of service, you cannot withdraw the EPS amount. Instead, you can opt for a Scheme Certificate by filling Form 10C along with the Composite Claim Form (Aadhaar or Non-Aadhaar).
The Scheme Certificate allows you to transfer your pension benefits if you join another employment later.
Pension will be paid to you after attaining the age of 58 years123.
Filing Form 10D for Immediate Pension:
To receive pension immediately after retirement, you need to fill Form 10D.
Unfortunately, Form 10D cannot be filed online. You’ll need to submit it physically to the EPFO Office.
Submission of Form 10D:
After your retirement, submit Form 10D to the EPFO Office to initiate the process of receiving pension.
Ensure that you complete all necessary documentation accurately.
Interest on EPF Account:
Until you decide to withdraw your EPF amount, it continues to earn interest.
As of now, the interest rate is determined by the EPFO and is subject to change periodically.
Since you are retiring on 30th April 2024, you can continue earning interest until you decide to claim your EPF.
Claiming EPF Account After Maximum Extended Period:
After the maximum extended period (usually 3 years of inactivity), you can still apply for EPF withdrawal.
While the process may not be available online, you can submit the necessary forms physically to the EPFO Office.
Remember to consult with your employer or the EPFO directly for any specific details related to your individual case. Best wishes for your retirement!

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Ramalingam

Ramalingam Kalirajan  |4060 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hi Sir, I have stopped EPF contributions wef Sept 23 due to end of my regular job at age of 57. Do I need to withdraw exactly as soon as I complete 58? Or I can park the money in EPFO to earn interest and withdraw when I require later? Do I need to
Ans: You're making prudent considerations regarding your EPF contributions. Let's discuss your options:
Withdrawal Timing:
• You have the flexibility to withdraw your EPF balance after the age of 58, as per EPFO regulations. There's no mandatory requirement to withdraw immediately upon turning 58. You can choose to keep the funds parked in your EPF account to continue earning interest until you require them.
Interest Earnings:
• By leaving your EPF balance untouched, you can benefit from accruing interest on your savings. EPF offers competitive interest rates, providing an opportunity for your funds to grow over time. This approach can be particularly advantageous if you don't have an immediate need for the funds and wish to capitalize on their earning potential.
Withdrawal Considerations:
• While you have the option to retain your EPF balance and withdraw it at a later date, it's essential to evaluate your financial goals and liquidity needs. Consider factors such as your retirement plans, anticipated expenses, and other sources of income. If you foresee a need for funds in the near future, withdrawing from your EPF account may be a viable option.
Financial Planning:
• As you navigate this decision, consider consulting with a Certified Financial Planner (CFP) who can provide personalized guidance based on your specific financial situation and goals. A CFP can help you assess the pros and cons of retaining your EPF balance versus withdrawing it, taking into account factors such as taxation, inflation, and investment alternatives.
In summary, you have the flexibility to decide when to withdraw your EPF balance after the age of 58. While retaining the funds in your EPF account allows you to continue earning interest, it's essential to weigh this option against your financial needs and objectives. By carefully evaluating your circumstances and seeking professional advice, you can make an informed decision that aligns with your long-term financial well-being.

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CAT, XAT, CMAT, CET Expert - Answered on Jun 26, 2024

Asked by Anonymous - Jun 22, 2024Hindi
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I graduated with a B.Com (General) with 73.52%, and I obtained 54.71% in 10th grade and 51.17% in 12th grade. I belong to the General category and am eligible for an EWS certificate. My academic profile is summarized as 5|5|7. Since graduation, I have been a fresher with no practical work experience or internships, and I do not have any notable co-curricular or extra-curricular achievements. I took the CAT 2022 exam shortly after graduation for experience. Following that, I started preparing for CAT 2023, XAT 2024, and MHT CET 2024 but was unsuccessful due to a lack of consistency, discipline, and dedication. This year, I am preparing for CAT, NMAT, SNAP, XAT, MHT CET, and CMAT with the goal of getting into a top B-school in India. My preparation is going well this time. Although I realize I may not get into the top IIMs (BLACKIS), I am targeting and working hard for the new and baby IIMs, XLRI, FMS, SPJIMR, NMIMS, SIBM, and other reputable non-IIMs. Many people have advised me to pursue an MBA from local colleges or to try for government or banking jobs. While I respect their suggestions, I am determined to pursue an MBA from a top college in India. I cannot change my past academic record, but I am focused on improving my overall profile. I seek your valuable guidance on how to justify my gap years, improve my profile, and get advice for GDPI, securing a SIP, and placement. Currently, I am only able to get job of BPS in MNCs with only 11k p.m. for night shift. It may affect my schedule my preparation and work culture will be hectic and will only get 1.5 to 2hrs on weekdays for preparation. If I able to get a sales/Marketing related to my career interest then i can max 14k with more hectic work and more travel which may results inconsistency in preparation in weekdays. Even if I start working now, I can only add about 2 months of work experience before CAT and other MBA entrance test registrations, and less than 10 months of work experience before GDPI next year. I am committed to achieving a 99+ percentile this time. Alongside my preparation, I have acquired two beginner-level certifications in digital marketing and plan to add up to five more certifications in pre-MBA relevant skills. I am highly grateful for your feedback and suggestions.
Ans: It may be a little difficult to get into top colleges based on your academics - though it is possible if you do well in the written test and interview. It will help if you look at more colleges for admission. IF you are ready to wait then can take up a job and try to get experience along with preparation for CAT. By next year you would have 1 year experience which would give you some additional marks that could help you get a call.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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