Human beings are prone to old age that results in the inability to work in many cases. Employers, both public and the private recognize the services of their employees and offer pension benefits after they reach the age of retirement, usually 55 or 60. The monthly pension benefits to the pensioners are greatly helpful in meeting their daily needs.
Sometimes, the employees fall victims to emergent financial crisis and have to withdraw cash against their pension funds before they reach the retirement-age. called as pension unlocking; pension release is the result of certain causes that compel the employees to opt for the same.
Circumstances that lead to pension unlocking – You or I may ask to release my pension because of the following unavoidable reasons:
- Sudden sickness – It is possible that somebody may suddenly fall sick that may require emergent hospitalization. Likewise sudden accidents may also need the same for which heavy expenses have to be incurred. Such situations may compel the concerned workers to go for pension release.
- Building construction – Not all of us are blessed with huge money for erection of new buildings or for their repairs/completion. Those facing such conditions may ask for release of pension before they attain the age of retirement.
- Marriages – Few of you may have to ask for release of pension to meet the expenses of marriage of your son or daughter or person so close to you. You may not be able to meet such emergent expenses in the ordinary course and may be compelled to withdraw the pension fund before its payment at the age of retirement.
- Repayment of loan – Situations may occur that you or I have to repay the loans that have since been availed in the past. Such situations may induce you or me to ask for release my pension.
Alternatives to pension-release: It is however recommended to escape the above conditions that would reduce the amount of your pension benefits in a big way and leave you debt-ridden and consequently with low income in your old age. Do consider the following options instead of going for pension release:
- Cut down your expenses – It is wise to stay away from the avoidable expenses that put you to financial crisis. You can just forget going to the bars with your friends every day. Follow them once a week or month. This would enhance the savings and keep the money for emergent purposes than release my pension.
- Cheap loans – Think of availing cheaper and easily repayable loans instead of opting for pension unlocking. Approach the banks or the money lenders that would be pleased to facilitate the same against your pension receipts itself.
- Living in small houses and other options – Why not start living in smaller houses than spending huge bucks for maintaining big bungalows at the cost of your pension funds by withdrawing the same through unlocking the same.
Guys reaching the retirement-age! Think of the above options to avoid pension-release and enjoy the same in full.