Retirement Benefits are a good companion during retirement days

Retirement gives a new lease of life for elders when they reach the age of 60. Every individual irrespective of his or her gender has to retire after long years of service. They either may be a government servant or employed in the private sector.

A person reaching the retirement age needs financial support to lead a happy and comfortable life thereafter. That comes in the form of retirement benefits such as gratuity, Dearness allowance, pension, and so on.

Usually, retired government servants receive pension and DA as their retirement benefits whereas private sector employees receive a lump sum payment once they retire. Whatever may be the case a solid and continuous flow of income after retirement would keep elders in good stead?

Retired persons the world over receive a pension and other old-age benefits to keep them going. In some countries, the government supports retired citizens financially. In India, government servants receive pension apart from DA and bonus on regular basis.

On the other hand, private sector employees retiring after 58 receive a lump sum payment based on their length of service rendered so far.

Let us take a sneak peek into the benefits that would support a retired person financially and emotionally during his post-retirement period:

 Government Employees

Pension

Retired government servants usually draw pension after they retire. This includes the basic pay and other additions over and above it. A person’s length of service until his retirement forms the basis for the calculation of the pension amount.

Dearness Allowance

Retired government servants receive Dearness Allowance to afford the cost of living post-retirement. DA paid annually is a good addition to a pension during the post-retirement period.

Bonus

This particular payment is paid Adhoc and on occasions like Diwali, Pongal, or Christmas to name a few. It acts as a force multiplier and is equivalent to one month’s salary.

Gratuity

This is a one-time lump sum benefit paid to the retired person or his family members after his death. This sum is paid based on the number of years of service rendered by the concerned person.

Private Sector Employees

Emoluments such as Bonus during festival season or performance-based increments are the benefits a private sector employee receives during his tenure.

When he or she retires, the person gets a lump sum payment depending upon the length of service rendered minus the deductions thereon.

A person also gets the leave encashment payment if he or she has not taken any leave during his service. The full and final payment made during retirement includes this amount as well.

A retired person has the necessary financial backing in the form of dues that he or she receives from his employer. Daughters and sons supporting their parents during old age

Pump in extra income every month from their monthly budget in addition to the dues, their parents receive from their employers. This leads to extra financial stability for the elders and makes them feel safe and secure.

Therefore, retired persons have nothing to worry about during their post-retirement days. Most of the elders prefer to invest their hard-earned money in government-sponsored schemes such as post office savings schemes and so on.

They are shrewd and bold enough to park their money in age-old schemes that are foolproof and government recognized. They are not naïve but they need mental and moral support during their retirement days.

To end this topic here, I have a word or two for retired elders so that they lead an organized and orderly life after retirement. They have to act wisely and think practically.

Do not waste money in bogus and unrecognized investment options and utilize your retirement benefits for yourself and your children’s education and upkeep.

To lead a happy, healthy, and tension free life after retirement is everyone’s dream, and positively nurturing this dream after flushing out the negatives should be the criteria for retirees.