Gratuity hike setback, wellness retreat: Top personal finance stories

Our top stories this week tell you about EPFO's decision and the best well retreats in the country

The Employees’ Provident Fund Organisation’s decision to defer a planned gratuity hike is a setback for government and organised sector employees. It affects their financial planning and retirement savings. In this week’s lead article, Bindisha Sarang explains gratuity taxation and eligibility for this payout under laws. She writes about the importance of staying informed about policy changes.

The second article, by Namrata Kohli, explores the rise of luxury wellness retreats that blend traditional healing practices with modern amenities. These retreats, which cater to both domestic and international tourists, are becoming increasingly popular among people seeking physical, mental, and emotional health benefits. Read this article for insights into the benefits of these retreats and for tips on choosing the right one.

Pension plans offered by insurers can help you earn a fixed amount each month after retirement. They pay a specified amount until death, unaffected by equity market fluctuations, interest rate movements, and other macroeconomic developments. The downside is that they do not protect you against inflation. If you are looking for an instrument that can serve as a replacement for your monthly income, look up Policybazaar.com’s table on guaranteed pension plans.

If you are looking for a fund where the fund manager is not constrained by market cap-related restrictions, go for a flexicap fund. Consider Morningstar’s review of HDFC Flexicap Fund.

NUMBER OF THE WEEK

Rs 90,555, price of silver per kg

The price of silver has surged 23.2 per cent in 2024: From Rs 73,501 per kg to Rs 90,555 (on May 23). It is speculated that the white metal may cross the Rs 1 lakh psychological mark, which could spark profit booking among investors and deter buyers.

According to experts, the demand for silver has slumped in the past few months owing to the price run-up.

Apart from ornamental use, silver also finds application in electric vehicles, solar panels, and semiconductors. India depends on imported silver to meet its demand.

Expectations of rate cuts are driving the price of silver. When interest rates are high, demand tends to shift from non-interest-bearing assets like gold and silver to interest-bearing bonds, and vice-versa. Another factor is industrial demand.

Investors should allocate only 5-10 per cent of their portfolios to precious metals. The investment horizon should be at least five years.