A dialogue between two friends about the father retirement
Asrar: Habibi, what's your plan tomorrow?
H: Nothing new. I help my father, who has retired. He looks after the land and the farm. The work of manuring coconut trees and banana plants has begun and so tomorrow I'll be busy helping my father.
A: What has you father been doing after retirement?
H: Nothing else. He hasn't much money to invest in any business nor is he business minded.
A: Life these days is difficult when one retires, isn't it? Doesn't father get any pension?
H: Oh, yes, he does. He retired on a pension at 55. It's because he gets a pension we are able to make both ends meet. He also gets some money by way of interest on his fixed deposits.
A: He may not have much savings as deposits.
H: I'm afraid he hasn't. he has commuted his pension. That amount, the gratuity amount he received and his savings in the provident fund, all these were put as fixed deposit for a period to get the maximum benefit.
A: What do you mean by commuting pension?
H: As a retirement benefit, pensioners are allowed to commute 50% of their pension for ten years. That is, on retirement 50% of the pension for ten year is paid to the pensioner is advance as a lump sum.
A: But afterwards you get only the remaining 50% as pension.
A: Then what is the advantage?
H: There are several advantage. If the amount is fixed in a bank, it will fetch you a bigger amount by way of interest every moth. That is one advantage.
A: What else?
H: Even if the pensioner dies the very next day after collecting the amount, it doesn't have to be repaid.
A: Yes, in the even of the death of the pensioner, it is a big advantage. We know that not many people live up to the age of 65 years. What else?
H: The amount can be used for investing in business, constructing a house, for children's marriage, etc. So almost everyone commutes pension. But the dearness allowance for full pension is paid every month along with the remaining 50% pension.
A: it is after retirement people need more money, especially when they fall ill. I wonder why the pensioner is not paid has last salary as his pension. Don't you think so?
H: You couldn't be more wrong. The idea is good but you know it is your money, the taxpayers' money that comes back to you in the form of pension. Somebody else working in his place has to be paid his full salary, too. Nobody would like to pay more tax and so it is nor practicable. Would you like to pay more tax?
A: No, I'm afraid I wouldn't. but does that solve the problems of the pensioner?
H: No, but there are other solutions. That is why employees are encouraged to save by taking insurance politics, contributing to the provident fund and various other schemes sponsored by the government and other private agencies.
A: I understand. Right from the time one gets employment, one has to start saving for the rainy day. So in addition his pension, income from his own savings will be able to support him.
H: Do you know what it needs? It needs lifelong planning.
A: In that case, there won't be much to worry on retirement.
H: When is your father retiring?
A: My father too will be retiring in a year or two. I hope he will plain in advance for his retirement.
H: You see, Asrar. You haven't yet completed your education, your sisters aren't married and your house is in a bad state of repair.
A: So you are telling me that more money will be required when my father retires.
H: Exactly so. But I'm sure father knows everything. May be has been planning all these years. Everyone does so, otherwise life will be a mess afterwards.
A: I think so. Now I understand why my father has always been very prudent in his expenditure.
H: It is high time you realized it. Parents always have the welfare of the family at their heart.
A: You are right, I know. Okay, have a nice weekend.
H: Same to you, Asrar. Bye.
H: Same to you, Asrar. Bye.