EPS: Retirement Planning Made Easy

From among the different aspects of financial planning such as investment planning, risk management and debt management, retirement planning is the most important. Retirement planning is essential to ensure financial stability and security during your golden years. It involves setting aside funds and making investments to build a retirement corpus that can provide you for your needs and expenses during retirement. Without proper retirement planning you may find it challenging to meet your expenses and maintain the same lifestyle when you are not active.

It helps you to achieve financial independence and you can support yourself without relying on your children or relatives. Only savings may not be sufficient to cover all expenditures and emergency needs. Although there are many ways to build an enormous corpus for your retired life, and one of the ways being mutual funds, there are various other ways in which we can accumulate wealth for your retirement. Most of us who are salaried use Public Provident Fund (PPF), National Pension Scheme (NPS), gratuity and investment in mutual funds to finance our retirement corpus. One way to plan for retirement, especially those who are employed in the private sector in India, is to utilise the Employee Pension Scheme (EPS) under the Employees’ Provident Fund (EPF).

The EPS is a defined benefit plan that provides guaranteed pension to EPF members who have completed at least 10 years of service. Till a couple of months back it was not the preferred route to accumulate wealth for retirement but after a ruling by the Supreme Court this may become one of the preferred routes. Our cover story deciphers who can go for it and how beneficial it is for retirement planning. By making wise financial decisions and selecting the right product for your long-term goals, you can make your financial journey stable and fulfilling.

Shashikant Singh
Executive Editor