Provident Fund: Retiring Early? Know How Much Pension You`ll Get If You Quit Before Turning 58

The Employee Pension Scheme (EPS) helps employees in the organized sector with their retirement savings. The Employees’ Provident Fund Organisation (EPFO) offers social security as EPS. The EPS scheme is open to both existing and new EPF members.

Pensions under this scheme are normally paid out whenever a person turns 58 or achieves retirement age. However, several employees quit their jobs rather early, either voluntarily or due to unforeseen events. A member of the pension scheme may be able to take an early pension before turning 58 years old, but the amount they receive will be different from what they would have received if they waited until after turning 58.

If a member is 50–58 years old, they may be eligible to get an early pension. They won't receive this advantage if they don't meet this requirement.   

A member may be eligible for a monthly pension under the pension plan (EPS-95) if they have completed 10 years or more of qualifying service and retire at the age of 58.

EPS members who retire or stop working before the age of 58 are eligible to receive an early pension. Members can take advantage of this once they turn 50 years of age.

If members choose an early pension, their pension amount received will be less. Such people would not receive a pension commensurate with what they would have gotten had they retired at age 58. The pension will decrease by 4% annually the earlier one decides to take money out before the age of 58. Suppose a ​​member decides to withdraw the pension at the age of 56 years, they will receive 92% of the basic pension amount.