When it comes to your retirement, timing is everything. The age at which you choose to start your Employees’ Pension Scheme (EPS) pension can make a significant difference to your monthly income — and therefore, to your long-term financial security.
In this blog, let’s break down the three options available under EPFO’s EPS: Early Pension, Normal Pension at 58, and Deferred Pension.
1. Early Pension (Age 50–57)
You can opt to start your pension as early as 50 years of age, provided you’ve completed at least 10 years of service.
- Adjustment: Your monthly pension is reduced by 4% for each year before you turn 58.
- Example: If you start at 55, your pension will be 12% lower compared to waiting till 58.
- Best For: Those who need income early, even if it means a smaller pension for life.
⚠️ Important: Once reduced, the pension amount is permanent. There is no upward revision later.
2. Normal Pension (Age 58)
This is the default retirement pension option. At 58 years of age, you receive the full pension amount you’re eligible for, with no deductions or bonuses.
- Adjustment: 100% pension (no reduction, no increase).
- Best For: Those who want a balanced and reliable income starting at standard retirement age.
This is the safest choice for most employees who are retiring at the normal retirement age.
3. Deferred Pension (Age 59–60)
If you don’t need pension income immediately at 58, you can defer it by up to 2 years (until 60).
- Adjustment: Pension increases by 4% for each year you defer, capped at a maximum of 8%.
- Example: Start at 60 → you get 8% higher pension every month, for life.
- Best For: Those with other income sources who can afford to wait, and want a higher guaranteed monthly income later.
Quick Comparison Table
| Option | Age | Adjustment | Best For |
| Early Pension | 50–57 | –4% per year | Those needing money early |
| Normal Pension | 58 | Full 100% | Balanced choice |
| Deferred | 59–60 | +4% per year | Those who can wait for higher pension |
Extra Pointers to Remember
- Pension is lifelong but stops on your death. After that, your spouse or eligible children may receive widow/widower/child pension as per EPS rules.
- No full withdrawal after 10 years. Unlike Provident Fund (PF), once you cross 10 years of service, your EPS corpus is locked into monthly pension — you cannot withdraw it in one lump sum.
- Decision factors:
- Health & life expectancy.
- Family’s financial needs.
- Alternate income sources during retirement years.
The Bottom Line
Your pension is not just a number — it’s the foundation of your retirement security. Whether you choose to start early, at 58, or defer, the decision will directly shape your monthly income for life.
👉 Make the choice with your health, family, and financial situation in mind — because the right timing can make all the difference.
Here is the official document for EPS (Employee pension share)
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