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Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

Thursday, 27 April 2017

12:49

Retired bank employees demand family pension hike

Retired bank employees demand family pension hike

Amaravati: All India Bankers Retirees Federation National General Secretary SC Jain has demanded that the family pension of the retired bank employees should be increased from 15 per cent to 30 per cent and stated that the issue has been pending for the last 25 years. He addressed the Andhra Pradesh Bank Retirees Federation (APBRF) annual meeting organised by the All India Retired Bankers Federation (AIRBF) at PB Siddhartha college auditorium here on Sunday.

The main agenda of the annual meet was to discuss the various problems faced by the retired bank employees. The chief guest of the annual meeting SC Jain addressing the gathering said there is a variation in retirement benefits of the bank employees who retired before 2002 and after 2002. He informed that the bank employees who retired after 2002 are getting more retirement benefits compared to bank employees who retired before 2002.

He further said that there was a variation of DA also. APBRF Krishna district secretary K Yella Rao said that they made representations to the bank authorities to solve their problems but there was no response from the Government. He said the retired employees protested on April 4 at Jantar Mantar, Delhi demanding the government to address their problems. He said more than 20,000 retired bank employees from all over India participated in the protest but there was no reaction from the Government.

He further said the retired employees would continue struggle to put pressure on the government to resolve their long pending problems. AIRBF vice-president K Viswanath Naik, state president Rajendra Prasad, Krishna district president JB Ratnam and others from 13 districts of AP participated in the meeting.

Source:HansIndia
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Thursday, 6 April 2017

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Monday, 16 January 2017

10:53

What To Know Before You Invest Your Retirement Money

What To Know Before You Invest Your Retirement Money
  • This money has to last for life. Be smart about what you do with it
  • When making decisions about how to invest your retirement money, education pays off. You do not want to gamble with your retirement money, nor is this the time to try something new and unproven. 
  • There are several steps you can to take to figure out where to put your retirement funds. You will be wise to consider them all before you make a decision.

1.Set Realistic Expectations about Investment Market Results
Despite the turmoil in the investment markets, those of us who understand how investing works will tell you that when it comes to your retirement money there is nothing that beats a diversified portfolio.
But what does that mean?
It means you develop what is called an asset allocation model which tells you how much of your retirement money should be in stocks versus bonds.
You look at the historical returns and risk associated with your asset allocation model, and the amount of money you need to withdraw each year. You then rebalance your account on a regular basis and stick with your long-term investment plan.
You must develop realistic expectations that some years you will have better returns than other years, and view your retirement investments over the course of your life, not over the next three months or one year. 

2. Accept Trade-offs
Everyone wants the perfect investment; something safe, which produces steady income and will grow in value over time. Such an investment doesn't exist. Educate yourself on investment basics to understand the trade-offs you must accept when investing.

There is no free lunch.

You can put your retirement money in safe investments and accept the guaranteed yet lower rate of return that they offer. Or you can choose to take a known level of investment risk and build a portfolio that offers the possibility of delivering higher returns than what the safe investments may deliver.

A diversified portfolio owns some investments that are safe, some that are designed to produce income, and some that will grow to provide income ten to fifteen years down the road. 

3. Learn and Get Advice 
The best thing you can do before you decide where to put your retirement money is get educated and seek professional advice. You can do this by reading books on investing so you understand basic investment concepts, or subscribing to a respected finance magazine and reading all the articles for one year. You can also watch online investment classes on YouTube, or look to see what community classes may be offered near you at a local college or community center. If you prefer to delegate, then interview several financial advisors and look for someone who is willing to educate you while also providing planning and investing services.

4. Avoid Big Mistakes
People make mistakes with their retirement money because of greed or ignorance. Greed kicks in when you see an investment that you think will deliver above average returns.
Ignorance is a factor when you don’t know what is and is not possible. This makes it easy for someone to talk you into something that is not a good choice for you.
When you understand how investing works, you know that above average returns are not possible over an extended period of time. The saying "pigs get fat, hogs get slaughtered" captures this tendency to get in trouble if you are too greedy. Many investments that appeal to the greed side of you turn out to be frauds or Ponzi schemes. If it sounds too good to be true, stay away. As you get closer to retirement avoiding big mistakes is more important than finding great investment returns.

5. Make a Long-term Plan, and Follow It
Making a plan helps you make smart decisions about how to invest. Your money has a job to do. It is no longer about how much you can accumulate; instead, it is about delivering a reliable monthly retirement paycheck. Investing for income is different, and your approach needs to change. The retirement decision is the biggest financial decision of your life - bigger than buying a house and far bigger than buying a car. If financial stuff is not easy for you, consider hiring a retirement planner. If you like math and numbers play with online retirement calculators or draw up your own retirement income plan in a spreadsheet format.

Source:The Balance
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Sunday, 24 July 2016

08:19

State Bank of India to bear legal costs for retired staff

State Bank of India to bear legal costs for retired staff

While legal cost of loan recovery is huge, what is bigger is the fear of having to bear it after retirement. State Bank of India as part of its recovery measures has decided to fund the legal costs even after retirement for its officers, in a signal to drive recovery. "When decisions have been taken while the employee is serving the bank ... then we are not going to abandon our employees even if it is post retirement," Rajnish Kumar, MD, SBI told ET. "We will give a certain amount of comfort and protection to our people against any sort of harassment." As part of the policy if retired State Bank employees have acted in good faith and they continue to fight legal battles against defaulters post retirement, the bank will bear all costs including legal and travel expenses. Kumar explained that the whenever an account goes bad the banks internal processes determine staff accountability and define whether a decision is bonafide or not.




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Tuesday, 12 July 2016

07:46

Government confirms resignation of state bank management team

Government confirms resignation of state bank management team

The office of the Portuguese finance minister confirmed on Tuesday that the board of directors of state-owned bank Caixa Geral de Depósitos has tendered its resignation in a letter sent to the minister, Mário Centeno, adding that the out-going directors are to stay at the bank until they are replaced.

Daily paper Público said on Tuesday that the Caixa Geral de Depósitos (CGD) board had resigned in a letter to the minister dated 21 June, saying “the government was responsible for the indecision that has been hanging for months over the largest bank in the Portuguese system”.
When Lusa News Agency contacted the ministry, a source confirmed the management team’s resignation , adding that “they remain in their posts until they are replaced” and that “there is not going to be any lack of a board at CGD”.
Público said the government is now in a race against time to ensure that António Domingues, former vice-chair of Bank BPI steps in quickly to clarify the strategy the state bank is going to follow for the next three years.
Meanwhile, a parliamentary commission is going to look into the management of the state-owned bank since 2000 and investigate the recapitalisation process currently being negotiated with Brussels.
On Monday, the bank’s union said that CGD was going to cut 2,500 jobs between 2017 and 2020, through early retirement and mutual agreement. 



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Monday, 23 May 2016

08:20

Loss due to Non Neutralization of D.A for pensioners retired prior to 31-10-2002

Loss due to Non Neutralization of D.A for pensioners retired prior to 31-10-2002

Many bank pensioners  retired prior to 31-10-2002 are not aware of effect of 100% neutralisation of D.A  and how much they are losing per month due to non neutralization of D.A. There are queries from these pensioners regarding effect of 100% neutralization of D.A. on their monthly pension as majority  pensioners do not know / understand the implications of 100% D.A.  neutralisation.

 All pensioners in bank are not drawing uniform D.A. as in the case of Govt. employees. Pensioners retired prior to 31-10-2002 are getting tapered  percentage of D.A. because D.A. is not neutralized to 100%.

 D.A. rates for pensioners retired after 01-04-1998 upto 31-10-2002    (1115 Slabs over 1684 points)

Upto 3550    3551-5650    5651-6010    Abv 6010
267.60%          223%         133.80%          66.90% 

One may notice that D.A.% gets tapered after Rs.3551 whereas under D.A neutralisation there is no tapering and pensioner is eligible for 267.60% DA on full basic pay. Suppose pensioner's basic is Rs 6200/- he should get 267.60% for the full amount under 100% DA neutralisation which would be Rs 16591.20, whereas now pensioner gets only Rs 14791.59, which means pensioner is losing Rs 1799.61 per month. Monthly loss of pension increases with increase in basic i.e. more the basic pension loss is more. For example a General Manager retired in March 2001, who is having basic pension Rs. 10680 is losing Rs.10797.70 per month due to non neutralization of D.A.

Following table gives exact  figure   of monthly  loss corresponding   to  the  basic (before commutation) of  the pensioners retired after 01-04-1998 upto 31-10-2002 . In the following table basic starts from 3550 and is stepped up by 10 upto 12000. One can view the  basic , present D.A, D.A after 100% neutralzation, Monthly loss due to non -neutralization. Table can be viewed / downloaded by clicking on the following link.
Table showing loss due to non-neutralization of D.A. 
For more precise calculation of loss due to non neutralization of D.A. an online calculator is provided . Pensioners  retired after 01-04-1998 upto 31-10-2002 can enter their exact basic pension (before commutation) in the calculator and get exact difference figure.



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Thursday, 11 February 2016

11:18

Product Crack: HDFC Retirement Savings Fund

Product Crack: HDFC Retirement Savings Fund

With mutual funds now allowed to launch pension-based schemes that aim to help you save for retirement and which also qualify to give tax deduction benefits under section 80C of the Income-tax Act, 1961, HDFC Asset Management Co. Ltd has launched a new scheme.

WHAT IS IT?
Under the retirement scheme, you have three plans to choose from: an equity plan, a hybrid equity plan and a hybrid debt plan. The equity plan is a full fledged equity scheme that will invest up to 100% in equity. The hybrid-equity plan will invest 60-80% in equities and the rest in fixed income securities, and the hybrid-debt plan will invest 5-30% in equities and the rest in fixed income securities.
All three will offer section 80C tax deduction benefits and come with a five-year lock in. Over and above the lock-in, there is an exit load if you redeem before you attain the age of 60.

WHAT WORKS...
The fund managers come with a good track record. Chirag Setalvad, who will manage the equity component, also manages the successful HDFC Midcap Opportunities Fund. Setalvad will, however, use a multi-cap strategy and will invest in scrips and sectors across market capitalisation. Given that such schemes run with a limited corpus, he will run a concentrated equity portfolio. For the fixed income portion, fund manager Shobhit Mehrotra will stick to high credit rated securities and will invest in a mix of government securities and corporate bonds. A small portion may be kept aside for any credit opportunities as and when there is merit in them.

A lock-in period and an exit load will also nudge investors to remain invested for as long as they can, though this is still not stringent enough to discourage premature withdrawals before 60. If you invest your corpus to build a retirement nest, it’s best that you invest regularly throughout your working life and remain invested till turn at least 60.

...WHAT DOESN’T
At the heart of it, HDFC Retirement Savings Fund is a basket that consists an equity fund, an equity-oriented fund with some exposure to fixed income securities and a fixed-income oriented fund with a small equity exposure. There are scores of existing schemes in the market that look just like these. To build a good retirement nest, you don’t really need a fund that has ‘retirement’ written on its brochure. Any ordinary equity-oriented fund is good enough, provided it is well-managed and you stay invested in a disciplined fashion. Sure, the lock-in and exit loads do their bit to make investors stay invested, but self-discipline ought to work as well.

MINT MONEY TAKE
We usually do not recommend targeted schemes—those that have a targeted goal like a children’s education mutual fund scheme or a retirement saving fund, and so on. Stick to investing in existing plain-vanilla diversified schemes that come with a healthy track record.

Source:BankingUpdates
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Tuesday, 2 February 2016

08:24

61% Indians aged 45-plus want to retire in next 5 years: Survey

61% Indians aged 45-plus want to retire in next 5 years: Survey 

MUMBAI: Nearly 61 per cent working population in India aged 45 plus want to retire in the next five years, with the majority saying work-related pressure is affecting their mental and physical health. 

Also, financial constraints are the biggest reason for those unable to retire, an HSBC survey revealed. 

Global bank HSBC's latest edition of 'The Future of Retirement Healthy New Beginnings study' found that 61 per cent of the working population in India aged 45 plus want to retire in the next five years. 

However, 14 per cent of them believe they will be unable to do so. Majority of them said they cannot retire as they would struggle financially. 

The findings of the study bring out an urgent need for Indians to begin saving early and planning well for their retirement, the survey said. 

The report also revealed that in India, 43 per cent would like to retire in the next five years to spend more time with their family. Others want to travel and pursue other interests (34 per cent) or pursue another career or voluntary work (20 per cent). 

However, 59 per cent cited work related pressures and issues as the reason for wanting to retire. 

The report also revealed that 27 per cent of pre-retirees aged 45 plus who would like to retire say it is because work is having a negative impact on their mental and physical health, 40 per cent of pre-retirees believe that poor health will make saving for their retirement more difficult. 

"People worldwide are recognising that retirement can be an opportunity for reinvention and new beginnings.

Yet financial barriers are preventing many people from retiring when they would like to - or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully, so the need for sound financial planning is stronger than ever," HSBC India Head of Retail Banking and Wealth Management S Ramakrishnan said. 

On the global front, the survey of more than 18,000 people across 17 countries worldwide found that the desire to retire is the strongest in Argentina (78 per cent), France (77 per cent), China (75 per cent) and the UK (75 per cent). 

Financial pressures are so great that 18 per cent of pre-retirees worldwide predict that they will never be able to retire fully. This is almost twice the proportion that said the same in 2015, when 10 per cent of pre-retirees expected never to be able to afford to fully retire, it said. 

Source:sapost
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