Which is better among PF or Pension? | Why should we select Pension rather than PF?

June 28th, 2010| Uncategorized.

Which is better among PF or Pension? | Why should we select Pension rather than PF?

It is better to select pension instead of PF and there are three reasons to select the pension.
1. If we select PF and if the current balance is Rs.100000. if the money to be returned is Rs.1, 15,000, then the total amount we lose are Rs.11.15 lakhs. But if we need the retirement pension, we can compute the one third of the basic pension. If the prices are increased in the future, then the DA is increased along with the pension. So the amount we lose in leaving the PF is obtained in computing the pension. So by selecting the pension, we lose 4 thousand per month according to the 8% interest. But we get the pension more than 15000 which is profitable for us.

2. If we keep the profit and loss aside, they will get the social security. Even if they are having the property, there is no use if we can’t get 10 to 15 thousand for daily expenses. They will be honored when they get the pension up to 15000 per month. If they get the pension, they won’t have any problems with working capital. They can live without the help of the children.

3. It may not be possible practically to live on the interest which we get on the PF. It is not possible for us to spend only the interest without touching the actual amount. When we want to buy anything, we need to spend the money and when someone ask as the money as debt, we will give them, we don’t know when will the amount be returned. When we face some problem with our health, we think that PF is better than pension. So without any loss, we should pay the interest for PF until five years after we start to take the pension.

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