Pension advice for 65-year-old woman with 20 years of service and 16,800 INR salary

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

Ans: Senior citizen can submit form 15H if tax calculated on income is NIL. Further, a resident individual with taxable income up to Rs 7,00,000 will receive a rebate from tax upto Rs 25,000 in FY 2023-24.

Thus, in your case tax on bank interest and pension is not likely to be zero, you can not submit form 15H.

Ans: When a widow remarries, her pension status may change. It depends on the specific rules of the pension scheme she is part of. In general, many government pensions stop after remarriage. However, there are some exceptions.

Legal and Scheme-Specific Factors
First, review the pension scheme’s rules. Some schemes allow continued pension for widows after remarriage. If it is a private pension, the rules might be different. Consult the scheme's guidelines or a legal expert.

Potential Impact on Pension
Remarriage can impact the financial stability of a widow. Losing a pension might affect her income. Consider the pension as part of her overall financial plan. If the pension stops, you may need to adjust other investments or sources of income.

Benefits of Actively Managed Funds
Actively managed funds are better than direct funds. They have professional management. This helps in navigating market changes. Regular funds offer advice and support from a certified financial planner (CFP). This can be crucial for achieving financial goals.

Importance of Certified Financial Planner
Consulting a CFP can provide valuable insights. They can help in understanding the implications of remarriage on pension. They also offer guidance on investment strategies. This ensures a holistic approach to financial planning.

Evaluating All Financial Aspects
Consider all aspects of financial planning. Look at insurance, savings, and other investments. Ensure that the widow’s financial needs are met. A balanced approach can provide financial security.

Final Insights
Marriage brings joy but may affect financial aspects. Understanding pension rules is crucial. Consulting a CFP can provide clarity and help in making informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in