Pension Big Update: The idea of maximizing your pension fund after retirement comes to everyone’s mind. For the last few days, news suggesting a reduction in pension amount has been doing the rounds on social media.
The central government has given a clarification on this. A recent important clarification issued by the central government has said that your pension will not be reduced after retirement. This is especially a relief for government employees and pensioners.
Whether you are in a government or private job, you might be wondering whether your pension will be reduced due to inflation or changes in rules. However, the central government has clearly stated that this is not the case. Post-retirement pensions remain fixed and are adjusted from time to time by increasing DA (Dearness Allowance), but never by reducing it. This clarification is from the Pension Fund Regulatory Authority (PFRDA) or the concerned departments, and it applies to both the National Pension System (NPS) and the old pension scheme.
The central government has said whether the pension will be reduced or not?
In fact, there were some reports and rumours that pensions could be reduced after retirement, especially if market conditions are poor or fund management becomes problematic. However, the government has made it clear that there will be no change in the rights of pensioners. Under NPS, your money is invested in the market, and you can withdraw 60% on retirement, and the remaining pension is received through annuity. There is no provision for any reduction here either. Those covered under the old pension scheme are even more secure, as it works on a fixed amount. The central government believes that ensuring the financial security of pensioners is a priority, and any policy changes will be made through public notification.
Keep these things in mind.
If you are retired or about to retire, first check your pension account. Also, check your bank statement or log in to the pension portal. If you have any doubts, call your department’s pension cell or PFRDA helpline immediately. To keep up with inflation, DA reviews are held every six months, which increases pensions. Apart from this, it is important to increase savings before retirement, and take insurance. If you are in a private job, you can choose options like EPF or PPF.
