Old Pension Scheme vs New Pension Scheme: What are the Advantages of the Old Pension Scheme?
The debate and politics regarding the old pension scheme and the new pension scheme in India continue. While all BJP-ruled states, including the central government, are pushing for the new pension scheme, some non-BJP ruled states have decided to restore the old pension scheme. These states include Rajasthan, Himachal Pradesh, Chhattisgarh, Jharkhand, and Punjab.
However, amidst the new-old debate, it is interesting to note that most of the employees in the country prefer to stay in the old pension scheme. So, what are the advantages of the old pension scheme that make it so popular among the employees? Let’s find out.
Steady Income After Retirement:
Under the old pension scheme, employees are entitled to a fixed amount of pension after retirement. This provides them with a steady income even after retirement, ensuring financial stability during their old age.
Family Pension Benefit:
In case of the untimely death of an employee, the old pension scheme provides for a family pension benefit to the spouse and children. This ensures that their family is taken care of even after the employee’s demise.
No Investment Risk:
The old pension scheme does not involve any investment risk for employees. Their pension is guaranteed by the government, and they do not have to worry about any market fluctuations or investment losses.
No Contribution Required:
Employees do not have to make any contribution towards the old pension scheme. It is entirely funded by the government, which means that employees can focus on their work without worrying about contributing towards their pension.
Tax Benefits:
Under the old pension scheme, employees are eligible for tax benefits on their pension income. This provides them with additional savings and reduces their tax liability.
In conclusion, the old pension scheme provides employees with a range of benefits that make it a popular choice among them. While the new pension scheme may offer some advantages, employees still prefer the old pension scheme for its stability, security, and tax benefits.
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