FORM 2
THE PATENTS ACT, 1970
(39 of 1970)
&
THE PATENT RULES, 2003
COMPLETE SPECIFICATION
(See Section 10 and Rule 13)
Title of invention:
METHOD AND SYSTEM FOR REGULATING PENSION FUND VALUE THROUGH SELF-ADMINISTRATION
Applicant
Tata Consultancy Services Limited
A company Incorporated in India under the Companies Act, 1956
Having address:
Nirmal Building, 9th floor,
Nariman point, Mumbai 400021,
Maharashtra, India
Preamble to the description:
The following specification particularly describes the invention and the manner in which it is to be performed.
2
TECHNICAL FIELD
[001]
The disclosure herein generally relates to intelligent pension fund management, and, more particularly, to a method and system for self-administering the pension fund during employment to generate aspirational pension fund amount by effectively balancing investments and taxes. 5
BACKGROUND
[002]
Historically, retirement security was considered the responsibility of the employer or government. Defined benefit retirement plans were established providing employees a certain defined monthly benefit during retirement. Due to 10 the number of variables involved and the extensive period of time covered before and during retirement, the cost of these plans became burdensome and costly to employers. Down the line, as the regulations changed, the employers took the leverage of defined contribution rather than defined benefit. With the majority of defined contribution plans, it is the responsibility of the employee to electively 15 save a portion of his or her annual salary. Some employers match or partially match the employee's contribution. The shift from defined benefit to defined contribution has caused an enormous shift in the level of individual responsibility for retirement savings and investment decisions. Many members of defined contribution pension schemes leave their contribution levels unaltered during their 20 working lifetime, or only subject to annual reviews. As the levels of employer and employee contributions are often at de minimis levels set out in pension regulations, the final pension fund may be inadequate for their retirement needs. In addition, opportunities to leverage valuable tax breaks and additional employer contributions to increase the value of the pension fund are overlooked, due to 25 complex tax rules and the need to review contribution levels before each tax year deadline. Current methods of retirement planning commonly take into account the members assets, liabilities, income and expenditure in order to establish the member’s current financial position. An attempt is then made to project the member’s financial requirements, and if sufficient capital is not available to 30 accommodate these requirements, suggestions are made as to how the necessary
3
capital can be provided. There are, however, a multiplicity of variables which
influence such projections, including variations in the inflation rate, applicable tax rates, and variations in income and expenditure, inter alia, as well as the great number of possible choices which the subject can make in terms of his or her lifestyle and likely future expenses (for example, the purchase of a holiday home 5 or a new vehicle).
[003]
The field of retirement savings has been greatly highlighted by the remarkable development of the company's benefit pension system, which provides a personal account, and each participant can manage the investment in the assets assigned to his or her personal account. As such, each participant can manage his 10 or her account, but until now, even basic investment portfolio management has been unfamiliar, requiring substantial investment counseling for many employees. There is a disconnect between separate platforms that manage pension contributions (usually the employer's payroll system) and the authorized pension providers who accumulate and invest these amounts held in trust for the scheme 15 member. Most pension schemes still rely on annual statements to alert members to their projected benefits at retirement, but it requires proactive steps by the scheme member to monitor and increase their contributions by effectively managing the pension fund during employment.
20
SUMMARY
[004]
Embodiments of the present disclosure present technological improvements as solutions to one or more of the above-mentioned technical problems recognized by the inventors in conventional systems. For example, in one embodiment, a method of regulating pension fund value by a pension scheme 25 member during his employment is provided. The method includes, providing, via the one or more hardware processors, a target fund value at a pre-defined retirement age, wherein the retirement age is customized at the end of a member to a pension scheme. The member provide the pre-defined retirement age as well as the aspirational pension fund value aggregated up to the pre-defined retirement 30 age. While setting-up the target pension fund value, the user can consider his/her
4
current lifestyle and the desired life
-style to be carried post-retirement. The method further includes, obtaining current pension fund value by aggregating, a plurality of components of the pension involving (i) existing pension fund, (ii) employer contribution, (iii) employee contribution, and (iv) growth value based on interest rate as applicable under the pension scheme. The existing pension fund 5 is a corpus saved so far in the pension scheme of the member. The employer contribution is the amount of pension received from the employer every month. The employer contribution is recurring and added to the pension fund on a fixed time interval thereby altering the existing pension fund. The employee contribution is the amount of pension deducted from employee’s salary every 10 month as a contribution towards pension fund. The employee contribution is recurring and added to the pension fund on a fixed time interval thereby altering the existing pension fund. The applicable interest rate on the corpus in the pension fund is also considered while estimating the current pension fund value. The method further includes, obtaining future pension fund value by aggregating the 15 current pension fund value, and for the number of years ahead of the retirement age, the employer contribution, the employee contribution, and the growth value. The future pension fund value considering a scenario wherein the employer contribution is estimated in the light of year wise predicted inflation for the number of years ahead of retirement. Similarly, the employee contribution is 20 estimated in the light of year wise predicted inflation for the number of years ahead of retirement. And a standard rate of interest is applied to calculate interest obtained on the estimated fund by aggregating employer’s future contribution and employee’s future contribution. The method further includes, processing, via the one or more hardware processors, a plurality of modules to manage real-time 25 fund addition in the plurality of components of the pension wherein, the plurality of modules comprises of (i) a taxation advisor module, (ii) regulation advisor module (iii) a contribution advisor module, and (iv) fund advisor module. The taxation advisor module monitors the updated pension fund and ensures the pension scheme is not over-funded or subject to additional taxation. The 30 regulation advisor module keeps a track on a plurality of rules and regulation
5
governing the pension scheme as well as other legislation affecting the pension
scheme. Any update or change in the rules/ regulations or legislations gets updated in the advisor module and triggers the response so that the pension fund estimation model 110 balances other modules to have future pension fund value on track for achieving the target pension fund value. The contribution advisor 5 module tracks the employer contribution and the employee contribution. The fund advisor module prepares an individualized portfolio reflecting investments of the member’s retirement savings. The method further includes, updating, via the one or more hardware processors, the plurality of components of the pension by, aggregating the existing fund and the real-time fund addition to obtain updated 10 future pension fund value. The pension contribution is recurrent and each time the employer contributions and the employee contributions are realized, the pension fund estimation model 110 updates the existing pension fund value. The fund realization triggers an update to all the modules to estimate the updated future pension fund value. The method further includes, estimating, via the one or more 15 hardware processors, a gap value by calculating difference in the updated future pension fund value and target fund value. The pension fund estimation model 110 estimate the gap value by calculating difference in the updated future pension fund value and target fund value wherein the gap value is a representative of surplus amount or a deficit amount between the updated future pension fund value 20 and the target fund value. The pension fund estimation model 110 receives simultaneous feedback from all the modules and perform calculation to find whether updated future pension fund value is on track to achieve the target value. The gap value estimation is important to trigger the further responses of pension fund estimation model 110 for balancing future pension fund value and target 25 pension fund value. The method further includes, alerting, via the one or more hardware processors, the member with a gap value for, (i) investment opportunities to equate updated future pension fund value and target fund value; and (ii) relaxation in the own contribution to equate updated future pension fund value and target fund value. Based on the gap value, the pension fund estimation 30 model 110 triggers suggestive actions to the user. The method further includes,
6
adjusting, via the one or more hardware processors the amount to be realized in
the employee contribution model, employer contribution model and the growth value model as suggested by the gap value. The method further includes, dynamically regulating, via the one or more hardware processors, the plurality of modules for keeping updated future pension fund value on track to meet the target 5 fund value at the pre-defined retirement age. The pension fund estimation model 110 allows the user to have the option to allow auto-adjustments of these parameters to keep the retirement fund on track to the selected retirement age. Alternatively, auto-adjustments within pre-agreed limits or altering only can be enabled. The model is then activated to draw contributions from the employer’s 10 payroll system or other sources of relevant earnings. Therefore, the method enables dynamic pension fund management with more effective and profitable fund delivered to the pensioner at retirement.
[005]
In another aspect, a system for regulating pension fund value by a pension scheme member during his employment is provided. The system includes 15 at least one memory storing programmed instructions; one or more Input /Output (I/O) interfaces; and one or more hardware processors, pension fund estimation model 110, operatively coupled to a corresponding at least one memory, wherein the system is configured to provide, via the one or more hardware processors, a target fund value at a pre-defined retirement age, wherein the retirement age is 20 customized at the end of a member to a pension scheme. The member provide the pre-defined retirement age as well as the aspirational pension fund value aggregated up to the pre-defined retirement age. While setting-up the target pension fund value, the user can consider his/her current lifestyle and the desired life-style to be carried post-retirement. Further, the system is configured to obtain, 25 via the one or more hardware processors, current pension fund value by aggregating, a plurality of components of the pension involving (i) existing pension fund, (ii) employer contribution, (iii) employee contribution, and (iv) growth value based on interest rate as applicable under the pension scheme. The existing pension fund is a corpus saved so far in the pension scheme of the 30 member. The employer contribution is the amount of pension received from the
7
employer every month. The employer contribution is recurring and added to the
pension fund on a fixed time interval thereby altering the existing pension fund. The employee contribution is the amount of pension deducted from employee’s salary every month as a contribution towards pension fund. The employee contribution is recurring and added to the pension fund on a fixed time interval 5 thereby altering the existing pension fund. The applicable interest rate on the corpus in the pension fund is also considered while estimating the current pension fund value. Further, the system is configured to obtain, via the one or more hardware processors, future pension fund value by aggregating the current pension fund value, and for the number of years ahead of the retirement age, the 10 employer contribution, the employee contribution, and the growth value. The future pension fund value considering a scenario wherein the employer contribution is estimated in the light of year wise predicted inflation for the number of years ahead of retirement. Similarly, the employee contribution is estimated in the light of year wise predicted inflation for the number of years 15 ahead of retirement. And a standard rate of interest is applied to calculate interest obtained on the estimated fund by aggregating employer’s future contribution and employee’s future contribution. Further, the system is configured to process, via the one or more hardware processors, a plurality of modules to manage real-time fund addition in the plurality of components of the pension wherein, the plurality 20 of modules comprises of (i) a taxation advisor module, (ii) regulation advisor module (iii) a contribution advisor module, and (iv) fund advisor module. The taxation advisor module monitors the updated pension fund and ensures the pension scheme is not over-funded or subject to additional taxation. The regulation advisor module keeps a track on a plurality of rules and regulation 25 governing the pension scheme as well as other legislation affecting the pension scheme. Any update or change in the rules/ regulations or legislations gets updated in the advisor module and triggers the response so that the pension fund estimation model 110 balances other modules to have future pension fund value on track for achieving the target pension fund value. The contribution advisor 30 module tracks the employer contribution and the employee contribution. The fund
8
advisor module prepares an individualized portfolio reflecting investments of the
member’s retirement savings. Further, the system is configured to update, via the one or more hardware processors, the plurality of components of the pension by, aggregating the existing fund and the real-time fund addition to obtain updated future pension fund value. The pension contribution is recurrent and each time the 5 employer contributions and the employee contributions are realized, the pension fund estimation model 110 updates the existing pension fund value. The fund realization triggers an update to all the modules to estimate the updated future pension fund value. Further, the system is configured to estimate, via the one or more hardware processors, a gap value by calculating difference in the updated 10 future pension fund value and target fund value. The pension fund estimation model 110 estimate the gap value by calculating difference in the updated future pension fund value and target fund value wherein the gap value is a representative of surplus amount or a deficit amount between the updated future pension fund value and the target fund value. The pension fund estimation model 110 receives 15 simultaneous feedback from all the modules and perform calculation to find whether updated future pension fund value is on track to achieve the target value. The gap value estimation is important to trigger the further responses of pension fund estimation model 110 for balancing future pension fund value and target pension fund value. Further, the system is configured to alert, via the one or more 20 hardware processors, the member with a gap value for (i) investment opportunities to equate updated future pension fund value and target fund value; and (ii) relaxation in the own contribution to equate updated future pension fund value and target fund value. Based on the gap value, the pension fund estimation model 110 triggers suggestive actions to the user. Further, the system is configured to 25 adjust, via the one or more hardware processors, the amount to be realized in the employee contribution model, employer contribution model and the growth value model as suggested by the gap value. Further, the system is configured to dynamically regulate, via the one or more hardware processors, the plurality of modules for keeping updated future pension fund value on track to meet the target 30 fund value at the pre-defined retirement age. The pension fund estimation model
9
110 allows the user to have the option to allow auto
-adjustments of these parameters to keep the retirement fund on track to the selected retirement age. Alternatively, auto-adjustments within pre-agreed limits or altering only can be enabled. The model is then activated to draw contributions from the employer’s payroll system or other sources of relevant earnings. Therefore, the system 5 enables dynamic pension fund management with more effective and profitable fund delivered to the pensioner at retirement.
[006]
In yet another aspect, a computer program product including a non-transitory computer-readable medium having embodied therein a computer program for pension fund value by a pension scheme member during his 10 employment is provided. The computer readable program, when executed on a computing device, causes the computing device to provide, via the one or more hardware processors, a target fund value at a pre-defined retirement age, wherein the retirement age is customized at the end of a member to a pension scheme. The member provide the pre-defined retirement age as well as the aspirational pension 15 fund value aggregated up to the pre-defined retirement age. While setting-up the target pension fund value, the user can consider his/her current lifestyle and the desired life-style to be carried post-retirement. The computer readable program, when executed on a computing device, causes the computing device to obtain, via the one or more hardware processors, current pension fund value by aggregating, 20 a plurality of components of the pension involving (i) existing pension fund, (ii) employer contribution, (iii) employee contribution, and (iv) growth value based on interest rate as applicable under the pension scheme. The existing pension fund is a corpus saved so far in the pension scheme of the member. The employer contribution is the amount of pension received from the employer every month. 25 The employer contribution is recurring and added to the pension fund on a fixed time interval thereby altering the existing pension fund. The employee contribution is the amount of pension deducted from employee’s salary every month as a contribution towards pension fund. The employee contribution is recurring and added to the pension fund on a fixed time interval thereby altering 30 the existing pension fund. The applicable interest rate on the corpus in the pension
10
fund is also considered while estimating the current pension fund value. The
computer readable program, when executed on a computing device, causes the computing device to obtain, via the one or more hardware processors, future pension fund value by aggregating the current pension fund value, and for the number of years ahead of the retirement age, the employer contribution, the 5 employee contribution, and the growth value. The future pension fund value considering a scenario wherein the employer contribution is estimated in the light of year wise predicted inflation for the number of years ahead of retirement. Similarly, the employee contribution is estimated in the light of year wise predicted inflation for the number of years ahead of retirement. And a standard 10 rate of interest is applied to calculate interest obtained on the estimated fund by aggregating employer’s future contribution and employee’s future contribution. Further, the system is configured to process, via the one or more hardware processors, a plurality of modules to manage real-time fund addition in the plurality of components of the pension wherein, the plurality of modules 15 comprises of (i) a taxation advisor module, (ii) regulation advisor module (iii) a contribution advisor module, and (iv) fund advisor module. The taxation advisor module monitors the updated pension fund and ensures the pension scheme is not over-funded or subject to additional taxation. The regulation advisor module keeps a track on a plurality of rules and regulation governing the pension scheme 20 as well as other legislation affecting the pension scheme. Any update or change in the rules/ regulations or legislations gets updated in the advisor module and triggers the response so that the pension fund estimation model 110 balances other modules to have future pension fund value on track for achieving the target pension fund value. The contribution advisor module tracks the employer 25 contribution and the employee contribution. The fund advisor module prepares an individualized portfolio reflecting investments of the member’s retirement savings. The computer readable program, when executed on a computing device, causes the computing device to update, via the one or more hardware processors, the plurality of components of the pension by, aggregating the existing fund and 30 the real-time fund addition to obtain updated future pension fund value. The
11
pension contribution is recurrent and each time the employer contributions and the
employee contributions are realized, the pension fund estimation model 110 updates the existing pension fund value. The fund realization triggers an update to all the modules to estimate the updated future pension fund value. The computer readable program, when executed on a computing device, causes the computing 5 device to estimate, via the one or more hardware processors, a gap value by calculating difference in the updated future pension fund value and target fund value. The pension fund estimation model 110 estimate the gap value by calculating difference in the updated future pension fund value and target fund value wherein the gap value is a representative of surplus amount or a deficit 10 amount between the updated future pension fund value and the target fund value. The pension fund estimation model 110 receives simultaneous feedback from all the modules and perform calculation to find whether updated future pension fund value is on track to achieve the target value. The gap value estimation is important to trigger the further responses of pension fund estimation model 110 for 15 balancing future pension fund value and target pension fund value. The computer readable program, when executed on a computing device, causes the computing device to alert, via the one or more hardware processors, the member with a gap value for (i) investment opportunities to equate updated future pension fund value and target fund value; and (ii) relaxation in the own contribution to equate 20 updated future pension fund value and target fund value. Based on the gap value, the pension fund estimation model 110 triggers suggestive actions to the user. The computer readable program, when executed on a computing device, causes the computing device to adjust, via the one or more hardware processors, the amount to be realized in the employee contribution model, employer contribution model 25 and the growth value model as suggested by the gap value. The computer readable program, when executed on a computing device, causes the computing device to dynamically regulate, via the one or more hardware processors, the plurality of modules for keeping updated future pension fund value on track to meet the target fund value at the pre-defined retirement age. The pension fund estimation model 30 110 allows the user to have the option to allow auto-adjustments of these
12
parameters to keep the retirement fund on track to the selected retirement age.
Alternatively, auto-adjustments within pre-agreed limits or altering only can be enabled. The model is then activated to draw contributions from the employer’s payroll system or other sources of relevant earnings. Therefore, the computer program product enables dynamic pension fund management with more effective 5 and profitable fund delivered to the pensioner at retirement.
[007]
It is to be understood that both the foregoing general description and the following detailed description are exemplary and explanatory only and are not restrictive of the invention, as claimed.
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BRIEF DESCRIPTION OF THE DRAWINGS
[008]
The accompanying drawings, which are incorporated in and constitute a part of this disclosure, illustrate exemplary embodiments and, together with the description, serve to explain the disclosed principles:
[009]
FIG. 1 illustrates an exemplary block diagram of a system 100 for 15 pension fund estimation model, according to some embodiments of the present disclosure.
[010]
FIG. 2 is a functional block diagram of pension fund regulation involving a plurality of mediators, according to some embodiments of the present disclosure. 20
[011]
FIG. 3 illustrates a functional block diagram depicting implementation of pension fund estimation model, according to some embodiments of the present disclosure.
[012]
FIG. 4 is a flow diagram of an illustrative method 400 for pension fund regulation, according to some embodiments of the present disclosure. 25
[013]
FIG. 5 illustrates a functional block diagram of the pension regulation system illustrating device connectivity, according to some embodiments of the present disclosure.
[014]
FIG. 6A depicts the user interface of the pension fund estimation system when parameters are set for smart funding mode by the scheme member, 30 according to some embodiments of the present disclosure.
13
[015]
FIG. 6B depicts the user interface of the pension fund estimation system when parameters are set for maximum funding mode by the scheme member, according to some embodiments of the present disclosure.
DETAILED DESCRIPTION OF EMBODIMENTS 5
[016]
Exemplary embodiments are described with reference to the accompanying drawings. In the figures, the left-most digit(s) of a reference number identifies the figure in which the reference number first appears. Wherever convenient, the same reference numbers are used throughout the drawings to refer to the same or like parts. While examples and features of 10 disclosed principles are described herein, modifications, adaptations, and other implementations are possible without departing from the scope of the disclosed embodiments.
[017]
In the foregoing description, terms “member”, “scheme member”, “employee”, “user” are used interchangeably, and they refer to an individual 15 regulating current pension fund value for achieving future pension fund by the method of the present disclosure.
[018]
The present invention revolves around a processor implemented method designed to facilitate the entry of detailed financial data relating to a member’s current and future pension fund values, to generate a detailed pension 20 fund estimation model from the data, using data corresponding to predicted future circumstances and assumptions, and especially to allow the model to be altered and developed using rules and preferences set by the member, thus allowing a detailed projection of the member’s future pension fund which takes both external factors and the member's own personal choices into account. In particular, the 25 method allows probable future annual cash flow surpluses and shortfalls to be identified, and automatically applies the rules and preferences set by the subject to invest the surpluses and to fund the deficits. The result is a suggested model representing a planned future pension fund value of the member, which can be analyzed and adjusted as required until an aspiration pension fund value results. 30 The processor implemented method, via a graphical user interface generates
14
displays allowing the calculated data to be viewed in a user
-friendly manner and generates printouts as a record of its operation.
[019]
With the passing of time, an employer-funded defined benefit (DB) pensions have become unaffordable, as mortality improvements and inflationary pressures have increased the liabilities on group pension schemes. With the 5 exception of some state-underwritten schemes for public service employees, DB schemes are now closed to most employees working in the private sector. The responsibility for making financial provision for retirement has shifted onto the employee in a Defined Contribution (DC) scheme. Most members of DC schemes have very limited awareness of how their scheme operates and how it 10 can be funded to deliver an adequate income in retirement. The complex rules, regulations and tax allowances that governments impose and rescind over a typical working lifetime add to the difficulty of making sustainable, long-term plans for retirement. Providing sound advice in preparation for retirement is the traditional preserve of financial planners and tax advisors. However, this option is 15 unaffordable for many, and infrequent reviews can leave DC pension scheme members vulnerable to changing circumstances. In some countries, the introduction of automatic enrolment for pension-eligible workers has changed behaviors, resulted in more employees joining workplace pension schemes. Legislation has then effected a gradual increase in both employee and employer 20 minimum contribution rates. More and more workers/ employees are saving towards a DC pension. It has been observed that that very less percentage of employees in DC schemes are saving at a contribution rate that is sufficient to deliver an adequate standard of living at retirement. This is an alarming situation. Therefore, the present disclosure relates to the design, features, development, and 25 implementation of a system for automating the regular contributions to a personal pension retirement fund. Aspects of the system can be tailored to the varying needs and aspirations of employees with relevant earnings. These features help to ensure that retirement plans are properly funded, realistic and achievable by the selected retirement date. Deviations from the planned target are monitored and 30 alerted to the pension scheme member. Automated corrective actions may be
15
taken within defined limits of what is permitted by the member and allowable by
legislation.
[020]
Referring now to the drawings, and more particularly to FIG. 1 through FIG. 6, where similar reference characters denote corresponding features consistently throughout the figures, there are shown preferred embodiments, and 5 these embodiments are described in the context of the following exemplary system and/or method.
[021]
FIG. 1 illustrates an exemplary block diagram of a system 100 for pension fund estimation model, according to some embodiments of the present disclosure. 10
[022]
In an embodiment, the system 100 includes one or more processors 104, communication interface device(s) or input/output (I/O) interface(s) 106, and one or more data storage devices or memory 102 operatively coupled to the one or more processors 104. The one or more processors 104 that are hardware processors can be implemented as one or more microprocessors, microcomputers, 15 microcontrollers, digital signal processors, central processing units, state machines, graphics controllers, logic circuitries, and/or any devices that manipulate signals based on operational instructions. Among other capabilities, the processor(s) are configured to fetch and execute computer-readable instructions stored in the memory. In the context of the present disclosure, the 20 expressions ‘processors’ and ‘hardware processors’ may be used interchangeably. In an embodiment, the system 100 can be implemented in a variety of mobile computing systems, such as mobile devices, laptop computers, notebooks, hand-held devices, workstations, mainframe computers, servers, a network cloud and the like. The I/O interface (s) 106 may include a variety of software and hardware 25 interfaces, for example, a web interface, a graphical user interface, and the like and can facilitate multiple communications within a wide variety of networks and protocol types, including wired networks, for example, LAN, cable, etc., and wireless networks, such as WLAN, cellular, or satellite. In an embodiment, the I/O interface(s) 106 can include one or more ports for connecting a number of 30 devices to one another or to another server. The memory 104 may include any
16
computer
-readable medium known in the art including, for example, volatile memory, such as static random-access memory (SRAM) and dynamic random-access memory (DRAM), and/or non-volatile memory, such as read only memory (ROM), erasable programmable ROM, flash memories, hard disks, optical disks, and magnetic tapes. In an embodiment, the memory 102 may include a database 5 or repository. The memory 102 may comprise information pertaining to input(s)/output(s) of each step performed by the processor(s) 104 of the system 100 and methods of the present disclosure. In an embodiment, the database may be external (not shown) to the system 100 and coupled via the I/O interface 106. The memory 102, further include a pension fund estimation model 110. The 10 pension fund estimation model 110 is operatively connected to a plurality of third-party servers via internet to receive pension fund related data. The pension fund estimation model receives current pension fund value, along with break-up details, from the one or more pension scheme providers, generally, a governmental agency. The memory 102 further includes a plurality of modules (not shown here) 15 comprises programs or coded instructions that supplement applications or functions performed by the system 100 for executing different steps involved in the process of pension fund estimation. The plurality of modules, amongst other things, can include routines, programs, objects, components, and data structures, which perform particular tasks or implement particular abstract data types. The 20 plurality of modules may also be used as, signal processor(s), node machine(s), logic circuitries, and/or any other device or component that manipulates signals based on operational instructions. Further, the plurality of modules can be used by hardware, by computer-readable instructions executed by the one or more hardware processors 104, or by a combination thereof. The plurality of modules 25 can include various sub-modules (not shown).
[023]
FIG. 2 is a functional block diagram of pension fund regulation mechanism involving a plurality of mediators, according to some embodiments of the present disclosure.
[024]
As illustrated in FIG. 2, the pension fund estimation model 110 30 comprises of a member user interface 202. The model 110 receives input from the
17
plurality of third
-party servers managing the pension fund according to the method disclosed in the present invention. The member user interface 202 manages communications with the selected device employed for the pension scheme user interface 110. The pension fund estimation model 110 is operatively coupled to a plurality of third-party servers via internet. The plurality of third-5 party servers comprises of payroll interface 204, advisor interface 206, regulation contribution manager 208, pensions gateway 210, banking services interface 212, taxation advisor module 214, regulation advisor 216 module, contribution advisor module 218 and fund advisor module 220. The pension fund estimation model 110 comprises of a payroll interface 204. The payroll interface 204 is a graphical 10 interface that manages communications and data transfer with the employer payroll, via internet. The advisor interface 206 hosts the arbitration server function, to curate the recommendations provided by the taxation advisor 214, regulation advisor 216, contribution advisor 218 and fund advisor 220. The Regular Contribution Manager 208 ensures that automated employee and 15 employer contributions are made on schedule, tax reliefs are credited, and the gross amounts are reflected in the pension fund value and investments as expected. Anomalies are reported via the member user interface 202. The pensions gateway 210 is operatively connects the pension fund estimation model 110 to the pension schemes, generally controlled by the government agencies or 20 insurance companies. The banking services interface 212 provides payment services for other eligible income fund, where the direct employer payroll interface cannot be accessed to manage additional contributions. It also allows personal contributions to be made outside of income when the member is not earning. The taxation advisor module 214 works in background and keep 25 suggesting tax relief options based on updated pension fund value upon every addition to the current pension fund value. The regulation advisor module 216 works in background and captures a plurality of updates and changes in the government rules and regulations governing the pension scheme. The contribution advisor module 218 ensures that automated employee and employer contributions 30 are made on schedule, tax reliefs are credited, and the gross amounts are reflected
18
in the pension fund value and investments as expected. Anomalies are reported
via the member user interface 202. The fund advisor module 220 provides a plurality of investment options based on a gap value in funds. The gap value is a difference in target fund value and a future pension fund. The target value which is an aspirational fund, a member seek at the retirement and the future pension 5 fund is the projected fund value based on current pension fund, applicable interest, applicable tax reliefs and liabilities in terms of on-going loan, if any. The pension fund estimation model 110 along with the plurality of modules interfacing with the third-party manages the pension fund using programmable, machine-learning or AI computer components. Database 222 is an exemplary repository for 10 permanent standing and historical data, comprising but not limited to, relational databases, rate tables, proprietary record structures and operational parameters.
[025]
FIG. 3 illustrates a functional block diagram depicting implementation of pension fund estimation model, according to some embodiments of the present disclosure. 15
[026]
The steps of the method 300 of the present disclosure will now be explained with reference to the components or blocks of the system 100 as depicted in FIG. 1 through FIG. 5. Although process steps, method steps, techniques or the like may be described in a sequential order, such processes, methods, and techniques may be configured to work in alternate orders. In other 20 words, any sequence or order of steps that may be described does not necessarily indicate a requirement that the steps be performed in that order. The steps of processes described herein may be performed in any order practical. Further, some steps may be performed simultaneously. At step 302 of the method 300, the one or more hardware processors 104 are configured to set a target pension fund 25 value at a pre-defined retirement age. The system 100 provides a user interface to input the planned retirement age as well as the aspirational pension fund value aggregated up to the planned retirement age. This becomes the basic personal data required by the system 100 to perform the further steps of the method disclosed in the present invention. While setting-up the target pension fund value, the user can 30 consider his/her current lifestyle and the desired life-style to be carried post-
19
retirement. Also, for the remaining years of retirement, user can consider the
inflation rate. These will help the user to set-up a realistic and essential target fund value. At step 304 of the method 300, the one or more hardware processors 104 are configured to obtain current pension fund value by aggregating, a plurality of components of the pension. The plurality of components of the pension comprises 5 of (i) existing pension fund, (ii) employer contribution, (iii) employee contribution, and (iv) growth value based on interest rate as applicable under the pension scheme. The existing pension fund is a corpus saved so far in the pension scheme of the member. The estimate of the existing pension fund is input to the system 100 as a baseline fund available and further calculations are built on the 10 baseline fund. The employer contribution is the amount of pension received from the employer every month. The employer contribution is recurring and added to the pension fund on a fixed time interval thereby altering the existing pension fund. In an embodiment of the present invention, the employer contribution equates to the employee contribution every month. In an embodiment, the 15 employer contribution varies from 5% to 15% of the basis salary of the employee. The employee contribution is the amount of pension deducted from employee’s salary every month as a contribution towards pension fund. The employee contribution is recurring and added to the pension fund at a fixed time interval thereby altering the existing pension fund. In an embodiment of the present 20 invention, the employee contribution equates to the employer contribution every month. In an embodiment, the employee contribution varies from 5% to 15% of the basis salary of the employee. The growth value is based on interest rate as applicable under the pension scheme. The applicable interest rate on the corpus in the pension fund is also considered while estimating the current pension fund 25 value. At step 306 of the method 300, the one or more hardware processors 104 are configured to obtain future pension fund value by aggregating the current pension fund value, and for the number of years ahead of the retirement age the employer contribution, the employee contribution, and the growth value. Once the system 100 estimates the current pension fund value, it calculates the future 30 pension fund value considering a scenario wherein the employer contribution is
20
estimated in the light of year wise predicted inflation for the number of years
ahead of retirement. Similarly, the employee contribution is estimated in the light of year wise predicted inflation for the number of years ahead of retirement. And a standard rate of interest is applied to calculate interest obtained on the estimated fund by aggregating employer’s future contribution and employee’s future 5 contribution. At step 308 of the method 300, the one or more hardware processors 104 are configured to process by a plurality of modules to manage real-time fund addition in the plurality of components of the pension wherein, the plurality of modules comprises of (i) a taxation advisor module 214, (ii) regulation advisor module 216, (iii) a contribution advisor module 218, and (iv) fund advisor module 10 220. The modules are created to monitor and assess different contribution levels to achieve target fund. Generally, pension schemes exempt the employee to pay any income tax on the percentage of his/her compensation that is contributed to the plan, such contributions effectively realize an immediate percentage gain defined by the employee's current tax bracket (which amount the employee would 15 otherwise have to pay in income tax if the employee took the compensation in cash). Additionally, neither employer matching contributions nor employer discretionary profit-sharing contributions are subject to taxation when made to the plan. The taxation advisor module monitors the updated pension fund each time the employer contribution and employee contribution gets added to the existing 20 pension fund value and keep a check on the accumulated fund. The taxation advisor module ensures the pension scheme is not over-funded or subject to additional taxation, at any policy anniversary or tax year when a pension crystallization event occurs. The regulation advisor module 216 keeps a track on a plurality of rules and regulation governing the pension scheme as well as other 25 legislation affecting the pension scheme. Any update or change in the rules/ regulations or legislations gets updated in the advisor module 216 and triggers the response so that the pension fund estimation model 110 balances other modules to have future pension fund value on track for achieving the target pension fund value. The regulation advisor module 216 dynamically makes recommendations 30 on contribution rates, based on the current funding and contribution patterns,
21
taking changes to the latest pension rules and regulations into account. The
contribution advisor module 218 tracks the employer contribution and the employee contribution. The contribution advisor module 218 ensures that automated employee and employer contributions are made on schedule, tax reliefs are credited, and the gross amounts are reflected in the pension fund value and 5 investments as expected. Anomalies are reported via the member user interface 202. The contribution advisor module 218 acts as a linker having association with all other modules to confirm modest working of all other modules. The fund advisor module 220 provides access to defined-contribution type plans, which give the member more control and discretion in the investment of funds. The fund 10 advisor is typically linked to a plurality of stock trading or equity firms and enable the member to choose among a number of different investment securities such as mutual stock funds, bond funds, cash management funds, and the like in which to invest the contributed funds, and normally the member can move funds from one security to another thereby changing the relative percentage contributed to the 15 different funds of the plan on an ongoing basis. The updated pension fund is allocated among various investments during the member’s working years in a manner to generate sufficient funds to finance a desired standard of living at the time of retirement. The fund advisor module 220 prepares an individualized portfolio reflecting investments of the member’s retirement savings. The 20 individualized portfolio is further divided into a fixed income portfolio and a growth-optimal portfolio. In one embodiment, the fixed income portfolio comprises a plurality of inflation-linked fixed income port folios (hereinafter collectively referred to as “fixed income portfolios”). For example, the fixed income portfolio may comprise a short-duration fixed income portfolio, a 25 medium-duration fixed income portfolio and a long-duration fixed income portfolio. The goal of each fixed income portfolio is to invest the members’ resources in a manner to deliver a sum of money sufficient to equate future pension fund value to the target pension fund value. In one embodiment, the growth-optimal portfolio comprises a dynamically managed set of funds in 30 different asset classes, for example, in a plurality of diversified global equity
22
portfolios (hereinafter collectively referred to as “global equity portfolios”). The
managed set of funds can be created using actual index funds or using derivatives, and the choice of index can also be based on cost. Each global equity portfolio comprises a combination of global equity, fixed income, and other assets. For example, the global equity portfolios may include one or more of a growth-5 optimal commodity fund, a growth-optimal corporate bond fund, a growth-optimal developed fund, a growth-optimal emerging market funds and a growth-optimal real estate fund. In one embodiment, the managed set of funds can grow or diminish over time as the user wants more or less funds managed in the growth portfolio. 10
[027]
At step 310 of the method 300, the one or more hardware processors 104 are configured to update the plurality of modules, individually, upon realization of contribution in the current pension fund value and estimating updated future pension fund value. The pension contribution is recurrent and each time the employer contributions and the employee contributions are realized, the 15 pension fund estimation model 110 updates the existing pension fund value. The fund realization triggers an update to all the modules to estimate the updated pension fund value.
[028]
At step 312 of the method 300, the one or more hardware processors 104 are configured to estimate a gap value by calculating difference in 20 the updated future pension fund value and target fund value. the pension fund estimation model 110 estimate the gap value by calculating difference in the updated future pension fund value and target fund value wherein the gap value is a representative of surplus amount or a deficit amount between the updated future pension fund value and the target fund value. The pension fund estimation model 25 110 receives simultaneous feedback from all the modules and perform calculation to find whether updated future pension fund value is on track to achieve the target value. The gap value estimation is important to trigger the further responses of pension fund estimation model 110 for balancing future pension fund value and target pension fund value. 30
23
[029]
At step 314 of the method 300, the one or more hardware processors 104 are configured to alert the member with a gap value and suggesting, (i) Investment opportunities to equate updated future pension fund value and target fund value; and (ii) relaxation in the own contribution to equate updated future pension fund value and target fund value. Based on the gap value, 5 the pension fund estimation model 110 triggers suggestive actions to the user. When the gap value is found to be deficient, the pension fund estimation model 110 suggest the plurality of investment options to keep updated future pension fund value and target fund value on track. When the gap value is found to be a surplus, the pension fund estimation model 110 suggest to relax the investment for 10 a suitable period of time to keep updated future pension fund value and target fund value on track.
[030]
At step 316 of the method 300, the one or more hardware processors 104 are configured to adjust the amount to be realized in the employee contribution model, employer contribution model and the growth value model as 15 suggested by the gap value. The pension fund estimation model 110 allows the user to have the option to allow auto-adjustments of these parameters to keep the retirement fund on track to the selected retirement age. Alternatively, auto-adjustments within pre-agreed limits or altering only can be enabled. The model is then activated to draw contributions from the employer’s payroll system or 20 other sources of relevant earnings. Based on the proposition made by the pension fund estimation model 110, the deficit in the future pension scheme is effected by pulling more funds into the employee contribution. Similarly, the employer contribution will be matched with the employee contribution by pulling more contribution. Also, growth value model make suggestions to invest in appropriate 25 investment plans based on projected benefits. Similarly, based on the proposition made by the pension fund estimation model 110, the surplus in the future pension scheme is effected by relaxing the employee contribution.
[031]
At step 318 of the method 300, the one or more hardware processors 104 are configured to dynamically regulate the plurality of models for 30 keeping updated future pension fund value to be on track to meet the target fund
24
value at the pre
-defined retirement age. After every contribution, the fund value and tax relief is tracked, to ensure the model selected for adjustments remain on track and the results fed back to the scheme member via the user interface for monitoring the possible alterations. Where permitted, future contributions may be auto-adjusted to maintain future pension fund value and growth value model. 5 Alternatively the shortfall will be reported to the user interface for possible alteration (590). Independently of contribution advisor module 218 and fund advisor module 220, and before anniversaries and key dates fall due, current income, tax bands, tax reliefs, pension rules and legislation are reviewed by the advisor module, to assess whether new funding opportunities are available, or 10 existing opportunities withdrawn at some future date. Alerts are raised through the member user interface 202 to ensure that the scheme member is aware of the adjustments and take the appropriate actions.
[032]
FIG. 4 illustrates functional block diagram depicting dynamic functionality of the pension fund estimation system, according to some 15 embodiments of the present disclosure.
[033]
FIG. 4 illustrates functional block diagram depicting dynamic functionality of the pension fund estimation system. At the step 402, the member is allowed to continue model different contribution levels and retirement ages to achieve his target fund value. In addition, assumptions, and aspirations about 20 future levels of workplace income are modelled, such as wage inflation, promotions based on career progression or part-time working nearer to retirement. At the step 404, once a satisfactory contribution is made and the retirement age has been set, the parameters necessary to describe the pension fund estimation model 110 in full are saved. The member is then allowed for auto-adjustments of 25 these parameters to be made by the system to keep the retirement fund on track to the selected retirement age. Alternatively, auto-adjustments within pre-agreed limits or altering only can be enabled. The model is then activated to draw contributions from the employer’s payroll system or other sources of relevant earnings. At the step 406, after every contribution, the fund value and tax relief 30 are tracked, to ensure the model selected remains on track and the results are
25
provided back to the scheme member via the user display device for monitoring
and possible alteration. At the step 408 wherever permitted, future contributions may be auto adjusted to maintain target pension fund value and the growth fund value. Alternatively, the shortfall will be reported to the user display device for possible alteration. The user display device provides option for self-administer the 5 fund based on member’s own choice of saving, investing, or suspending the funds to the plurality of contributions. At the step 410, the plurality of advisory modules (214-220) reviews key dates, current contribution, tax bands, tax reliefs, pension rules and legislation. Alerts are raised through the user display device to ensure that the scheme member is aware of these and can take the appropriate actions. 10
[034]
FIG. 5 illustrates a functional block diagram of the pension regulation system illustrating device connectivity, according to some embodiments of the present disclosure.
[035]
FIG. 5 illustrates a functional block diagram of the pension regulation system illustrating device connectivity. The pension fund estimation 15 system 100 is linked, via the internet, with a locally-hosted application executing on the pension scheme member user interface. Thus, the user experience is instantiated on the user display device 202.
[036]
FIG. 6A depicts the user interface of the pension fund estimation system when parameters are set for smart funding mode by the scheme member, 20 according to some embodiments of the present disclosure.
[037]
As illustrated in FIG. 6A, the target pension fund value is provided at the pre-defined retirement age of 74. The “smart funding” tab 602 is for an optimal contribution scheme that maximizes tax reliefs for the pension scheme. The pie charts 604 shows the current pension fund value and target pension fund 25 values at age 74, as amounts and percentages of the fund value that currently provides the maximum amount of tax-free cash at retirement. The current contribution rate 606 is shown at centre just below the pie chart. The control options, 608 and 610 enable the scheme member to self-administer the pension fund estimation system. From the option 608, the member can suspend the current 30 contribution in various scenarios. E.g. during a period of financial stress, change
26
in the contribution target and funding model or upon surplus amount existing in
the pension fund. From the option 610, the member can change the target pension fund value in various scenarios relating to financial aspirations and current situation of the member. The graph 612 shows the projected growth in future pension fund value to the selected retirement age. 5
[038]
FIG. 6B depicts the user interface of the pension fund estimation system when parameters are set for maximum funding mode by the scheme member, according to some embodiments of the present disclosure.
[039]
As illustrated in FIG. 6B, the target pension fund value is provided at the pre-defined retirement age of 74. The “max funding” tab 614 is for highest 10 possible contribution that maximizes tax reliefs for the pension scheme. The other features of the user interface remain same as that of “smart funding” mode. The pie charts shows the current pension fund value and target pension fund values at age 67, as amounts and percentages of the fund value that currently provides the maximum amount of tax-free cash at retirement. The current contribution rate 15 616 is shown at centre just below the pie chart. The control options enable the scheme member to self-administer the pension fund estimation system same as depicted in FIG. 6A. The member can suspend the current contribution in various scenarios same as depicted in FIG. 6A. E.g. during a period of financial stress, change in the contribution target and funding model or upon surplus amount 20 existing in the pension fund. The member can change the target pension fund value in various scenarios relating to financial aspirations and current situation of the member same as depicted in FIG. 6A. The graph shows the projected growth in future pension fund value to the selected retirement age same as depicted in FIG. 6A. Therefore, just by changing current contribution rate 616, the target 25 pension fund value is shown to be achieved at much earlier age of 67 years. This is a maximum funding model of the system disclosed according to the embodiments of the present disclosure. The system 110 adjusts all the associated modules to estimate the funding opportunity as well as possible tax reliefs on the maximum funding mode. Therefore, system 110 prompts the user to make 30 intelligent decisions to maximize funding at the earliest retirement age.
27
[040]
The written description describes the subject matter herein to enable any person skilled in the art to make and use the embodiments. The scope of the subject matter embodiments is defined by the claims and may include other modifications that occur to those skilled in the art. Such other modifications are intended to be within the scope of the claims if they have similar elements that do 5 not differ from the literal language of the claims or if they include equivalent elements with insubstantial differences from the literal language of the claims.
[041]
The embodiments of present disclosure herein addresses unresolved problem of regulating pension fund value by the pension scheme member during employment. The present disclosure enables the scheme member 10 to link and co-ordinate, in real time, the regular and single contributions to a personal pension fund and the current and projected values of the fund at retirement. The member can set a planned retirement age and the aspirational size of the retirement fund or income. The embodiment thus provides a method for regulating pension fund value during the employment by first setting up a target 15 pension fund value and then estimating future pension fund value by aggregating various components of the pension. The method further estimate the gap in between target pension fund value and future pension fund value and dynamically adjusts available tax reliefs and investment options to achieve target pension fund value at a pre-defined retirement age. Therefore, the disclosed system enables 20 dynamic pension fund management with more effective and profitable fund delivered to the pensioner at retirement.
[042]
It is to be understood that the scope of the protection is extended to such a program and in addition to a computer-readable means having a message therein; such computer-readable storage means contain program-code means for 25 implementation of one or more steps of the method, when the program runs on a server or mobile device or any suitable programmable device. The hardware device can be any kind of device which can be programmed including e.g., any kind of computer like a server or a personal computer, or the like, or any combination thereof. The device may also include means which could be e.g., 30 hardware means like e.g., an application-specific integrated circuit (ASIC), a
28
field
-programmable gate array (FPGA), or a combination of hardware and software means, e.g., an ASIC and an FPGA, or at least one microprocessor and at least one memory with software processing components located therein. Thus, the means can include both hardware means, and software means. The method embodiments described herein could be implemented in hardware and software. 5 The device may also include software means. Alternatively, the embodiments may be implemented on different hardware devices, e.g., using a plurality of CPUs.
[043]
The embodiments herein can comprise hardware and software elements. The embodiments that are implemented in software include but are not limited to, firmware, resident software, microcode, etc. The functions performed 10 by various components described herein may be implemented in other components or combinations of other components. For the purposes of this description, a computer-usable or computer readable medium can be any apparatus that can comprise, store, communicate, propagate, or transport the program for use by or in connection with the instruction execution system, 15 apparatus, or device.
[044]
The illustrated steps are set out to explain the exemplary embodiments shown, and it should be anticipated that ongoing technological development will change the manner in which particular functions are performed. These examples are presented herein for purposes of illustration, and not 20 limitation. Further, the boundaries of the functional building blocks have been arbitrarily defined herein for the convenience of the description. Alternative boundaries can be defined so long as the specified functions and relationships thereof are appropriately performed. Alternatives (including equivalents, extensions, variations, deviations, etc., of those described herein) will be apparent 25 to persons skilled in the relevant art(s) based on the teachings contained herein. Such alternatives fall within the scope of the disclosed embodiments. Also, the words “comprising,” “having,” “containing,” and “including,” and other similar forms are intended to be equivalent in meaning and be open ended in that an item or items following any one of these words is not meant to be an exhaustive listing 30 of such item or items, or meant to be limited to only the listed item or items. It
29
must also be noted that as used herein and in the appended claims, the singular
forms “a,” “an,” and “the” include plural references unless the context clearly dictates otherwise.
[045]
Furthermore, one or more computer-readable storage media may be utilized in implementing embodiments consistent with the present disclosure. 5 A computer-readable storage medium refers to any type of physical memory on which information or data readable by a processor may be stored. Thus, a computer-readable storage medium may store instructions for execution by one or more processors, including instructions for causing the processor(s) to perform steps or stages consistent with the embodiments described herein. The term 10 “computer-readable medium” should be understood to include tangible items and exclude carrier waves and transient signals, i.e., be non-transitory. Examples include random access memory (RAM), read-only memory (ROM), volatile memory, nonvolatile memory, hard drives, CD ROMs, DVDs, flash drives, disks, and any other known physical storage media. 15
[046]
It is intended that the disclosure and examples be considered as exemplary only, with a true scope of disclosed embodiments being indicated by the following claims.We Claim:
1. A processor implemented method of regulating future pension fund value, the method comprising:
providing (302), via the one or more hardware processors, a target fund value at a pre-defined retirement age, wherein the retirement age is customized at the end of a member to a pension scheme; obtaining (304), via the one or more hardware processors, a current pension fund value by aggregating, a plurality of components of a pension involving (i) an existing pension fund, (ii) an employer contribution, (iii) an employee contribution, and (iv) a growth value based on an interest rate as applicable under the pension scheme; obtaining (306), via the one or more hardware processors, a future pension fund value by aggregating the current pension fund value, and for remaining years of retirement, the employer contribution, the employee contribution, and the growth value;
processing (308), via the one or more hardware processors, a plurality of modules to manage real-time fund addition in the plurality of components of the pension wherein, the plurality of modules comprises of (i) a taxation advisor module, (ii) regulation advisor module (iii) a contribution advisor module, and (iv) fund advisor module;
updating (310), via the one or more hardware processors, the plurality of components of the pension by, aggregating the existing fund and the real-time fund addition to obtain an updated future pension fund value; estimating (312), via the one or more hardware processors, a gap value by calculating difference in the updated future pension fund value and target fund value wherein the gap value is a representative of a surplus amount or a deficit amount between the updated future pension fund value and the target fund value;
alerting (314), via the one or more hardware processors, the member with a gap value for,

investment opportunities to keep the updated future pension fund value on track to achieve the target fund value, if the gap value is representative of a deficit of the estimate;
relaxation in the own contribution to keep the updated future pension fund value on track to achieve the target fund value, if the gap value is representative of a surplus of the estimate; adjusting (316), via the one or more hardware processors, the amount to be realized in the employee contribution model, the employer contribution and growth value model based on the gap value; dynamically regulating (318), via the one or more hardware processors, the plurality of modules for keeping updated future pension fund value on track to meet the target fund value at the pre-defined retirement age.
2. The method as claimed in claim 1, wherein the adjustment in the updated future pension fund value is based on harnessing highest tax rebate in any given contribution year; and wherein the updated future pension fund value is not over-funded or subject to additional taxation, at any policy anniversary or tax year when a pension crystallization event occurs.
3. The method as claimed in claim 1, wherein the investment growth model is integrated to a plurality of investment tools providing one or more investment opportunities comprising unit-linked insurance plans, mutual funds, shares, debentures, bonds and the like.
4. The method as claimed in claim 1, wherein the existing fund model is integrated to a pension governance system to receive latest pension rules and regulations into account while estimating the updated future pension fund value.
5. A system (100), comprising:

a memory (102) storing instructions;
one or more communication interfaces (106); and
one or more hardware processors (104) coupled to the memory (102)
via the one or more communication interfaces (106), wherein the one
or more hardware processors (104) are configured by the instructions
to:
provide, via the one or more hardware processors, a target fund value
at a pre-defined retirement age, wherein the retirement age is
customized at the end of a member to a pension scheme;
obtain, via the one or more hardware processors, a current pension
fund value by aggregating, a plurality of components of a pension
involving (i) an existing pension fund, (ii) an employer contribution,
(iii) an employee contribution, and (iv) a growth value based on an
interest rate as applicable under the pension scheme;
obtain, via the one or more hardware processors, a future pension fund
value by aggregating the current pension fund value, and for remaining
years of retirement, the employer contribution, the employee
contribution, and the growth value;
process, via the one or more hardware processors, a plurality of
modules to manage real-time fund addition in the plurality of
components of the pension wherein, the plurality of modules
comprises of (i) a taxation advisor module, (ii) regulation advisor
module (iii) a contribution advisor module, and (iv) fund advisor
module;
update, via the one or more hardware processors, the plurality of
components of the pension by, aggregating the existing fund and the
real-time fund addition to obtain an updated future pension fund value;
estimate, via the one or more hardware processors, a gap value by
calculating difference in the updated future pension fund value and
target fund value wherein the gap value is a representative of a surplus

amount or a deficit amount between the updated future pension fund value and the target fund value;
alert, via the one or more hardware processors, the member with a gap value for,
investment opportunities to keep the updated future pension fund value on track to achieve the target fund value, if the gap value is representative of a deficit of the estimate;
relaxation in the own contribution to keep the updated future pension fund value on track to achieve the target fund value, if the gap value is representative of a surplus of the estimate; adjust, via the one or more hardware processors, the amount to be realized in the employee contribution model, the employer contribution and growth value model based on the gap value; dynamically regulate, via the one or more hardware processors, the plurality of modules for keeping updated future pension fund value on track to meet the target fund value at the pre-defined retirement age.
6. The system as claimed in claim 5, wherein the adjustment in the updated future pension fund value is based on harnessing highest tax rebate in any given contribution year; and wherein the updated future pension fund value is not over-funded or subject to additional taxation, at any policy anniversary or tax year when a pension crystallization event occurs.
7. The system as claimed in claim 5, wherein the investment growth model is integrated to a plurality of investment tools providing one or more investment opportunities comprising unit-linked insurance plans, mutual funds, shares, debentures, bonds and the like.
8. The system as claimed in claim 5, wherein the existing fund model is integrated to a pension governance system to receive latest pension

rules and regulations into account while estimating the updated future pension fund value.