I am a retired person my wife is employed in a bank how much she will get pension per month if her gross salary is 1.6 lac

Ans: Pension from where ?

Ans: Your pension amount is determined by various factors including your years of service, average salary, and the pension scheme offered by your employer. Private firms typically have different pension schemes, so it's important to review your employment contract or consult with your HR department for details on your specific pension plan.

Your pension amount may also be influenced by any contributions you've made towards the pension scheme during your employment. Generally, the longer your service and the higher your salary, the higher your pension amount is likely to be.

To get an accurate estimate of your expected pension amount, it's best to consult with your employer or a financial advisor. They can provide personalized guidance based on your individual circumstances and the details of your pension scheme.

Ans: Since you've been working in the organization since 2010, you'll be eligible for a monthly pension from this scheme.

The pension amount is calculated based on your service years and average salary during the last five years of employment. The maximum salary considered for this calculation is Rs 15,000, irrespective of your actual salary.

Pension Calculation
For your case, the pension amount under EPS can be estimated using the following factors:

Service Years: 14 years (from December 2010 to January 2025)
Average Salary: Rs 15,000 (since it is capped under EPS)
The formula used by EPS for calculation is:

Pension Amount = (Service Years) * (Average Salary) / 70

So, based on this formula, your pension is calculated as:

Monthly Pension = 14 * Rs 15,000 / 70 = Rs 3,000 per month (approximately)

This amount is an estimation and may vary slightly depending on other factors considered by the EPS at the time of your retirement.

Provident Fund Contribution
Your contribution and your employer’s contribution towards the PF will also create a significant corpus. With 17 years of service, the accumulated amount in your PF account should be substantial. Once you retire, you can either withdraw this amount or opt for periodic payouts to supplement your pension.

Recommendations for Post-Retirement Financial Planning
Maximize PF Benefits: Ensure you withdraw your PF in a manner that maximizes your benefits. If you don't need a lump sum, consider periodic withdrawals.

Invest Wisely: Invest your PF withdrawal in diversified mutual funds to generate a stable post-retirement income. A Certified Financial Planner can guide you in selecting the right funds based on your risk tolerance and financial goals.

Health Coverage: Ensure you have adequate health insurance to cover medical expenses post-retirement. Relying solely on pension and savings might not be enough for unforeseen medical costs.

Budget Planning: Create a detailed budget for your post-retirement life. Factor in regular expenses, medical costs, and leisure activities. This will help you manage your finances efficiently.

Consider Professional Guidance: As you approach retirement, professional financial advice becomes more crucial. Consulting a Certified Financial Planner will ensure that your retirement funds are managed optimally.

Finally
Your pension from the EPS will provide a steady income, but it may not be enough to cover all your expenses. Therefore, it’s crucial to plan ahead, invest wisely, and ensure that your financial future is secure.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

The current maximum monthly pension payable under EPS is Rs. 7500/-.

So getting 15 K monthly pension is not possible.

The EPF fund which she will receive after retirement may be invested in an immediate annuity/bank FD/POMIS to get additional monthly income.

Best wishes;