Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7411 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
rajaganesan Question by rajaganesan on Jan 23, 2024Hindi
Listen
Money

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: Your Wife's Bank Pension - Planning for a Secure Future!
Congratulations on your retirement! It's fantastic that your wife is employed with a bank and contributing towards a pension. Here's what to know about her potential pension amount:

Calculating Bank Pension is tricky!

Unlike the Employees' Provident Fund Organisation (EPFO), banks have different pension structures.
Factors affecting bank pension:

Bank's specific pension scheme: Each bank may have its own rules and formulas for calculating pensions.
Salary structure: Basic salary, allowances, and other components might be considered.
Years of service: The longer she works, the higher the potential pension amount.
Unfortunately, I can't give an exact figure due to these variations.

Here's what you can do:

Contact her HR department: They can provide details on the specific bank pension scheme and how to estimate her pension.
Consider a Certified Financial Planner (CFP): A CFP can help analyze your overall financial situation and plan for retirement together.
Remember:

Your wife's bank pension is a great source of income, but it might not be the only one needed for retirement.
Planning for your combined retirement needs is crucial.
Here are some tips:

Estimate your retirement expenses.
Consider your other retirement savings.
Plan to bridge any gap between expenses and income.
A CFP can help you create a personalized retirement plan.

Enjoy your retirement!

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.
Money

You may like to see similar questions and answers below

Sunil

Sunil Lala  |203 Answers  |Ask -

Financial Planner - Answered on Jan 19, 2024

Ramalingam

Ramalingam Kalirajan  |7411 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 16, 2024

Listen
Money
Good day Sir, I am working in a MNC company for last 17 years. I am going to retire 30 th January 2025. My Basis salary is Rs 28089/- & my contribution to PF is Rs 3371/- per month & as per procedure same amount also contribute from my employer towards my PF account. I have joined this organisation on 10 th Dec 2010. & expect a contribution nearly Rs 190000 in my Employees Pensoins Scheme. Request what will be my my monthly pension after retirement.
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

..Read more

Latest Questions
Career

Career Coach  |49 Answers  |Ask -

Workplace Expert - Answered on Jan 03, 2025

Asked by Anonymous - Jan 03, 2025Hindi
Listen
Career
Hi, I’m a second year undergraduate student, and my friend told me about the CUET PG exam . Honestly, I’m still a bit confused about what exactly this exam is for. Is it just for admissions into central universities, or do private and state universities also accept CUET PG scores? I want to pursue my master’s degree, but I’m not sure if this is the right exam for me or if there are other options I should consider. Could you please explain the purpose of CUET PG and how it works?
Ans: Dear Student,

It's great that you're thinking about your postgraduate options early on in your undergraduate degree. The CUET PG exam is indeed a significant one for students in India, and it's good you're seeking clarity. Let me break it down for you:

What is CUET PG?

CUET PG stands for Common University Entrance Test (Postgraduate). It's a national-level entrance exam conducted by the National Testing Agency (NTA) for admissions into various postgraduate programs. Think of it as a gateway to higher education after your bachelor's degree.

Who Accepts CUET PG Scores?

You're right to ask about the scope of this exam. Primarily, CUET PG scores are used for admission to Central Universities across India. However, its reach is expanding. Many State Universities and even some Private Universities have also started accepting CUET PG scores for their postgraduate programs. This means a wider range of options for you based on your performance in a single exam.

Is CUET PG Right for You?

Whether CUET PG is the "right" exam for you depends on where you want to study and what you want to study.

• If you're aiming for a Central University, CUET PG is essential.
• If you're considering State or Private Universities, check if they accept CUET PG scores. This information is usually available on the university's admission website or the CUET PG information bulletin.

Other Options to Consider:

While CUET PG is a major exam, there are other options depending on your chosen field:

• University-Specific Entrance Tests: Some universities, especially well-established ones, might conduct their own entrance tests in addition to or instead of CUET PG.
• National-Level Exams: For certain fields like management (CAT, XAT), engineering (GATE), or pharmacy (GPAT), there are specific national-level exams.

How CUET PG Works:

• Exam Format: CUET PG is a computer-based test (CBT) with multiple-choice questions (MCQs).
• Syllabus: The syllabus generally covers subjects you've studied in your undergraduate program.
• Scoring: You'll receive a score based on your performance, which you can then use to apply to participating universities.
• Counseling: Each university will have its own counseling process based on CUET PG scores.

My Advice:

1. Explore Your Interests: Decide on the specific master's program you want to pursue. This will help you narrow down your university options.
2. Research Universities: Make a list of universities offering your desired program and check their admission criteria, including whether they accept CUET PG scores.
3. Check CUET PG Eligibility: Ensure you meet the eligibility criteria for CUET PG, which usually involves having a bachelor's degree in a relevant field.
4. Prepare Strategically: If you decide to take CUET PG, start preparing early and focus on the syllabus relevant to your chosen program.

I understand the importance of making informed decisions about your education. I hope this explanation helps you understand CUET PG better.

...Read more

Samraat

Samraat Jadhav  |2136 Answers  |Ask -

Stock Market Expert - Answered on Jan 03, 2025

Nayagam P

Nayagam P P  |4022 Answers  |Ask -

Career Counsellor - Answered on Jan 03, 2025

Listen
Ramalingam

Ramalingam Kalirajan  |7411 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 03, 2025

Asked by Anonymous - Jan 03, 2025Hindi
Listen
Money
I have invested in ICICI Prudential Nifty 50 index SIP. I have noticed that from past 6 months the fund is not performing. Should I keep this fund or liquidate and invest in in multi asset fund?
Ans: The ICICI Prudential Nifty 50 Index Fund replicates the Nifty 50 index. It is a passive fund that mirrors the index performance. The last six months have been volatile for the stock market, which has affected index funds. This is expected in short-term market conditions and does not reflect the long-term potential of index-based funds.

However, relying on index funds for wealth creation in volatile markets may not always be optimal. Active funds offer the flexibility of stock selection, better risk management, and potential for higher returns.

Why Active Funds May Be a Better Choice
Volatility Management: Active fund managers adjust the portfolio based on market trends. This flexibility helps during volatile times.

Higher Growth Potential: Actively managed funds can outperform index funds by investing in sectors and stocks with higher potential.

Diversification: Multi-asset funds allocate across equity, debt, and other asset classes. This reduces risk and provides stability.

Assessing Your Current Investment
Index Fund Performance: While the last six months may seem disappointing, index funds are designed for long-term investors.

Cost Factor: Index funds have lower expense ratios but lack active management during market fluctuations.

Active vs Passive: Actively managed funds are better during periods of market instability. They offer professional stock selection and sector rotation.

Benefits of Multi-Asset Funds
Balanced Portfolio: Multi-asset funds invest in equities, bonds, and gold, diversifying your investment.

Risk Mitigation: Allocation to multiple asset classes reduces portfolio volatility.

Stable Returns: These funds aim to provide consistent returns, even during volatile markets.

Suggested Action Plan
Reevaluate Goals: Align your investment decisions with your financial goals and risk tolerance.

Shift to Active Funds: Consider shifting from the Nifty 50 index fund to an actively managed multi-cap or multi-asset fund.

Monitor Performance: Choose funds with a strong track record and consistent performance across market cycles.

Consult a Certified Financial Planner: A planner can help you select the right actively managed funds and align your investments with your financial plan.

Final Insights
While index funds like ICICI Prudential Nifty 50 are suitable for passive investors, active funds offer an edge in volatile markets. Shifting to a multi-asset or actively managed fund may help you achieve better returns and stability.

Invest wisely, monitor regularly, and stay disciplined to maximise your wealth creation journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x