PMR Misconceptions Article 3 - by Amit Sangwan

PMR -  Misconceptions, Fears, Go-No Go Criterion  and Some Tips

Article number 03 in PMR series by
Amit Sangwan

1. I have recieved a lot of feedback and queries for previous two articles. Will try to address most of them here. Please save these articles. Re read them. Once the series of seven over , full clarity on subject will emerge.

2. The Equation :-

S - T- A- B - C - D = P + R

(i)  Where S is your total monthly salary . Left side of payslip.

(ii)   T is tax per month which goes to government.

(iii) A is agis subscription
(iv) B is average monthly loss you incur because of  extra travel expense  associated with uncertainities of service life. Also add your daily commute for work expense in this.

(v) C social mandatory expenses for obligatory parties , mess bills, travel for parents health ,marriages etc

(vi) D is extra cost of running 2 establishments because of field postings.All this is average per month. This will also include your commuted amount divided by 15 (approx 3000 rs )

(vii) P is pension per month. How you calculate this. Your basic salary is at 20 yrs is 147500 and Msp is 15500.
So total is 163000 rs.
Pension becomes 50 percent of this. ie 81500.
This is called basic pension.so basic pension is 81500.
50 percent of this gets commuted.ie 40750.
Depending on your  age commutation factor is there.say about 9.1 for 42 year old.it means commutation amount will be 9.1x12 (months)×40750=45 lakhs.
Residual pension is basic pension minus commuted pension ie 81500 minus 40750 =40750.
Pension in bank is residual pension plus DA on 81500.
So if DA is 20 percent then
Pension going in bank is 40750 plus .2x81750=57000.

(viii) R is 10 percent return on retirement corpus which is namely
Leave encashment
Gratuity
Commutation
Agis survival benefit.
It does not include PF.

3.  I have summarised my article 2 in above equation. In future context i will refer to it as The Equation. If you understand this equation, then confusion about future after PMR will reduce drastically.

4. Again putting in words, essence of equation is that after 20 years financially there is no difference whether you work on not.

5. Misconceptions and Fears
During the feed back of previous articles I encountered following

(a) My qualification is just BA

How does it make a difference. Refer Equation. No difference it makes.You can afford to sit at home and do nothing. I am not advocating that you actually dont do anything.But there is no fire.

(b) I am worried for my kids education

How is it linked to PMR. In fact if you are really worried then instead of going to field and leaving all burden on your wife ,you make take PMR and be with your kids.This way you will be there to guide and help them.

(c) I dont know what job i will get or which courses should I do.mba or something else.I have done from symbiosis

The problem with most ex nda(dont troll me .i am also one) is that they have not seen failure and struggle.Because just after 12th they have become c/o 56 APO.
Mba wont help unless from IIM or ISB.
But why in 40 s you want to struggle again.When will you live.

(d) My coursemate or unit type has promised ki adm offr ko itna ho jayega

Please dont rely on all this.Never works that way.Your friend is not sure of his next months pay.Only if your close friend is running his own venture, then it has some meaning.

6 . The Go-No Go Criterion

Pilots may understand above.
For rest following 3 issues  should be clear or sorted out before you put your PMR application. If not than as per me it wont be a smooth transition and not advisable

(a) City or town where you will stay should be decided beforehand.

People will ask how can I do this.I dont know where my job may be. Answer is for the benefit and safety of the equation to kick in this has be known.This can be hometown where parents house is there or city where you own a property in which you will go. It is possible this may be a city where you do not own a property and will stay on rent.But then you should own a property (1 or 2)  somewhere else which will pay for this property ka rent. If you cant satisfy this condition dont leave.

(b) Wife fully on board with the decision of PMR

Depending on how successful your career is going, ladies do enjoy lot of comfort and khushi time in fauj. Whether its sahayak or may be a cook driver etc or the general safety net of fauj. She may actually not feel your angst of stagnating.
Some may not want to relocate to in laws place.
Some may be happy with arrangement of you being in field and she teaching in army school. She visiting you for 2 months.You visiting her for 2 months. Her parents visiting her for 2 months.And she not seeing your parents at all.
This arrangement is heaven for her. So discuss and discuss load sharing after retirement with her. Otherwise you will be the sahayak.Wont feel nice especially if you have commanded a unit.
She may not allow your leaving the fauj .
Dangers of above arrangement of you staying away is that man is reduced to being Atm.
Your sex life finished. Children and family get used to staying without you.
After some times tolerating you for 2 months leave will become difficult for them. Basically you will lose control of family.All this happens very slowly and is not easily discernible.
Please remember the equation at top has been understood by many before all of you trading this article but still people continue like zombies because of this important reason.
If your wife is domineering and you are in this situatoon then you  wont be able to leave .she will throw 20 conditions at you like show me the job before leaving.let kid finish his 12th.Let this tenure finish.Lets see next posting. You go to port blair. We will retain accomadation here and we will get island allowance.dont worry we will visit you for 2 months there.
You do qualification first.
I may be the only expert in the country to get fauji men out of this peculiar situation.If you do require help pls send query.

(c) Alcohol

If you drink daily and look forward to excuses to party and celebrate than pls dont leave.Because these habits can work in fauj not outside.
As a test leave alcohol for 3 months.If you succeed than go ahead put up PMR.
Why i am making an issue of this seemingly normal thing is that when you leave things may not be rosy in short term and being a habitual drinker you may tip to other side of being heavy drinker.Because definately when you leave a job self esteem issues kick in and with combination of a kaleshi wife it can become dangerous.

7. Actionable points

(a) wife s role is crucial. She should pick a job in your selected city. Teacher job with 30 to 45 k salary good enough.

(b) Select the city first and then the job in that place  only.Not vice versa.

(c) City should have some connection.For south indians Chennai , Bangalore, Hyderabad or Kochi. North indian Delhi Gurgaon  or Chandigarh. Pune or MMR for Marathi guys. Staying in a city very culturally different is not enjoyable in long run. Remember here its for long haul. Not 2 year tenure.

(d) Please carry out test whether you are alcohol dependent or not by leaving for 3 months.

8.  Before taking plunge sort out above issued.There is per se no finiancial risk.  It's more of  a mental thing. Also dont be desperate in seeking any job which comes your way. Take 6 months off. Figure out things.(On these things is article no. 5 especially for infantry guys who always feel overwhelmed vis a vis the techies)
Spend time with parents. If you are sainik school type it would be more than 33 years since you left them. Watch your kids grow. Let memsahib do the job and bring in the moolah .Enjoy role reversal for 6 months. Encourage her to do her own thing. Remember her energy and enthusiasm levels normally will be higher than yours since you have just stopped chakki peesing after 25  (training included).

9. Next article  will be on utilising retirement corpus.

10. Hoping people get essence of above and some points resonate with them.

Note:-

1. When I wrote in last article no calls please only connect by whatsapp what i meant was whatsapp message not whatsapp video calls.😂

2. I am an introvert person. Also please stop speculating which arm I am from. I can say I am a fauji kid. Father retd Col from infantry.Ok take some more Punjab regiment.

3. My interest lies primarily in financial planning, numeralogy , marriage counselling and career planning for kids.

4. My idea is to offer mental models which can be used as tools to navigate the maze of life. Like a carpenter or plumber uses tools to do jobs . These tools will not only solve the problem but most likely dissolve them also.

5. So tool for today

Never Ever Compare Your Worst With Anybody Else ' s Best.It Will Only Lead To Misery.

Explanation

(i) His wife is prettier than mine.But you may not know the pretty lady doesnt know how to cook and keeps the house in a mess compared to jannat your wife has made for you.

(ii) Faujis are disadvantaged vis a vis ias
Do u know they have 40 postings in 20 years ,with mind boggling public dealing at cost of personal time and can be suspended at drop of hat.Also if they are so good please make your kids  ias.

(iii) I have a Xuv 500 he has a Mercedes .

Probanly he is in debt for the car and you habe 40 lakh worth of shares in your demat account.

9911702005.