PFRDA

Which one to choose;employee saving fund or pension fund?

I am confused which one to choose; employee saving fund which will give me around 600,000 in 15 year time or pension which will give me 3000 a month for the rest of my life.If I choose the saving fund I will get the money in one lump sum.

Public Comments

1. Let me finish your thought... ...and if you choose the pension fund, the company could go belly-up before you retire giving you nothing!
2. Some employment can not even last more than 10 years Divide 600,000 by 15 years = 40,000 per year Try bargain for 30,000/- each year (give rebate of 25% to Employer)
3. 600,000 at 6% will pay you 36,000 per year or 3000 per month.but there are taxes to consider in both cases and as I don't know whether your a Canadian or American taxpayer, I cannot comment however make sure that there are alternatives to having to declare 600,000 all in one year. I am assuming that your invstment is sheltered from tax until it is withdrawn.Questions to ask are if you take and start receiving the 3000 and die soon after, what happens . Is a lump sum payable to the estate or a benefieciary as a lump sum or monthly payment.Does the decision have to be made now or can it be made at the time of withdrawal. It would be best if could be later as conditions in life can change in a heartbeat. mThese are but a few of the questions you need answers for before any decision can be made. I am afraid I have answered your questionwith more questions. I suggest tou put this question to Yahoo Answers when you can provide more of these facts