EPFO Pension – Claim at 58 or Wait Till 60? Find Out Which Age Pays You More

The Employees’ Pension Scheme (EPS) is run under EPFO. If someone contributes to EPFO ​​for 10 years, then they will be eligible to get pension under EPS after retirement. The amount of pension depends on the length of service and contribution to EPS. How much pension one gets is determined on the basis of a specific formula. Generally, pension from EPFO ​​is available at the age of 58. However, one can claim it before or after the age of 58. Both options are available to everyone. This decision affects the overall pension. Let’s know about these rules of EPFO ​​here.

Early Pension Option Between 50 and 58 Years

According to EPFO, if someone wants to claim pension before the age of 58, it is called early pension. One can apply for this scheme anytime between the ages of 50 and 58. However, there is one drawback: you will get 4% less pension every year.

If a member wants to take pension at the age of 56, then he will get 8% less pension due to taking pension two years early. This means that he will get 8% less pension, i.e. 92% of the pension he would have received at the age of 58. The amount eligible for pension will be reduced by 4%. For primary pension, a composite claim form and Form 10D are required.

Benefits of taking pension after the age of 58

The age of 58 is considered as the default retirement age for EPFO. There is no deduction or bonus for taking pension at this age.

However, many members are not aware that as per the rules, they can contribute to EPS for two years after the age of 58, if they wish. During this period, their pension is withheld and they get bonus. If someone takes pension at the age of 60 instead of 58, then the benefits increase as it increases the pension.

• 1 year (58-59) + 4%
• 2 years (58-60) + 8%

This means that if someone waits till the age of 60 to get pension, then he can get an additional 4% every year or 8% more in his lifetime.

If someone has not completed 10 years of EPS, then he has two options:

1. Stop PF + Pension contribution.
2. Get Pension Scheme Certificate, so that it can be linked with EPS account in new job.