Is Withdrawing EPS Early for Bank Deposits More Beneficial Than Monthly Pensions? What Do You Think?

I think it is better to withdraw an EPS 10 years before and deposit it into the bank for the return deposit. This way, you can enjoy double benefits - one being the lump sum amount and the second being interest. However, with the Pension Fund scheme, you only receive interest and not the full EPS share.

What do you think?

I would advise you to consider the overall benefits in the long term. Short-term deposits, when withdrawn upon maturity, may not provide lasting benefits. However, EPS offers lifelong benefits to the pensioner until death, and thereafter to the widow along with two children up to the age of 25 years. This aspect is crucial from a Social Security perspective, and it is not easily matched by any other scheme, especially in times of dire need.

Regards,
Chandok A K
RPFC (Retd.)
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