Retirement Finance

As the September 30 deadline approaches, the central government employees must choose between the assured payouts of UPS and the market-driven growth of NPS.

Unified Pension Scheme mirrors National Pension System's tax benefits; employees have time till Sept 30 to make switch

The government has opened a one-time window for employees under the Unified Pension Scheme (UPS) to switch back to the National Pension Scheme (NPS), reshaping retirement choices for millions

Rising costs and financial goals prompt the wealthy to raise the bar, according to HSBC's Affluent Investor Snapshot 2025

The new scheme provides a guaranteed monthly pension, lump sum payout, and interest-bearing arrears for NPS subscribers who retired on or before 31 March 2025

Central government employees retiring a day before their annual pay hike date would be eligible to get notional increment for the purpose of calculating the pension admissible to them, an official order said. The move follows a Supreme Court order in this regard. "It is advised that in pursuance of the above referred order dated 20.02.2025 of the Hon'ble Supreme Court, action may be taken to allow the increment on July 1/January 1 to the Central government employees who retired/are retiring a day before it became due, i.e., on June 30/December 31, and have rendered the requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them," the order issued by the personnel ministry said. The existing rules allow the employees to choose either July 1 or January 1 as their increment date. As specifically mentioned in the orders of the apex court, "grant of the notional increment on January 1/July 1 .

In the last three years, the top 5 retirement funds have given an average return of 11-16 percent to investors

Their risk-return profiles can vary widely. Equity-focused schemes may perform better in a bull market, while debt-oriented ones may offer greater stability during volatile periods

Rising awareness of financial planning has fueled a 256 per cent increase in retirement mutual fund AUM in the last five years, according to a report. Factors such as rising healthcare costs, increasing nuclear families, and higher life expectancy are likely to fuel further growth in this sector, an ICRA Analytics report said. "Assets under Management (AUM) of these funds have grown by over 256 per cent in the last five years, reaching Rs 29,903 crore in July 2024, compared to Rs 8395 crore in July 2019," it said. ICRA said the growing awareness has led to a surge in the number of folios, which has increased by 17.44 per cent in the last five years to 29.36 lakh in July 2024, up from 25 lakh in July 2019. The number of schemes has also increased from 21 in 2019 to 29 in 2024. A retirement mutual fund is a specialized investment vehicle designed to provide a secure and comfortable post-retirement life. These funds invest in both equity and debt, aiming to balance wealth appreciation

Individuals working for companies that come under the Employees' Provident Fund Organisation and have an EPF account are eligible to open a VPF account

Stay invested even after lock-in ends to gain from compounding

Comprehensive planning would include managing anxiety, identity loss, and loneliness; creating a comprehensive health routine; tackling social and relationship issues

Some investors in a troubled trust fund in China are facing financial ruin under a government plan to return a fraction of their money, casualties of a slump in the property industry and a broader economic slowdown. Sichuan Trust, headquartered in the southwest city of Chengdu, announced it was insolvent in 2020, stricken by sketchy accounting and failed investments in shopping malls and other projects. A deadline earlier this month to accept a 20%-60% haircut or loss on their investments has left some investors in deep financial trouble, according to public announcements and AP interviews with five people affected. China's economy, the world's second largest, depends heavily on real estate development to drive growth and create jobs. Property prices and sales have languished after a crackdown on what leaders viewed as dangerous levels of borrowing, causing dozens of developers to default on their debts. At the National People's Congress session in Beijing last week, officials pledg

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