EPF withdrawal rules: The rules for withdrawing money from provident fund account have been simplified. But, this money is your retirement fund. Removing it again and again can cause a big loss to you. After 30 years, your retirement fund can suffer a loss of up to Rs 35 lakh.
EPF Withdrawal: Start a job, provident fund will be deducted, yet savings will be accumulated. But, in the meantime, if there is a change of job or there is such a need that you withdraw from EPF, then it is a big mistake. However, withdrawal can be done in emergency. But, many people break it in between considering it as savings. Means withdraw money. It is not right to do so. Because, this is a retirement fund. By repeatedly withdrawing money from EPF account, your retirement fund gets reduced. It is very important for you to understand that how much loss can be caused by withdrawing money from EPF account.
How much will the money received on retirement decrease? (How withdrawal impact Retirement)
Retired Assistant Commissioner of EPFO A.K. According to Shukla, your age is 30 years and there are 30 years left for retirement and if you withdraw Rs 1 lakh from your EPF account, then at the age of 60, the amount you get from the retirement fund will be reduced by Rs 11.55 lakh.
| how much pf withdrawal | What is the difference in fund after 20 years | What is the difference in fund after 30 years |
| 10 thousand rupees | 51 thousand rupees | 1 lakh 16 thousand rupees |
| 20 thousand rupees | 1 lakh 02 thousand rupees | 2 lakh 31 thousand rupees |
| 50 thousand rupees | 2 lakh 55 thousand rupees | 5 lakh 58 thousand rupees |
| 1 lakh rupees | 5 lakh 11 thousand rupees | 11 lakh 55 thousand rupees |
| 2 lakh rupees | 10 lakh 22 thousand rupees | 23 lakh 11 thousand rupees |
| 3 lakh rupees | 15 lakh 33 thousand rupees | 34 lakh 67 thousand rupees |
Note: The calculation (Amount+Interest) has been done on an approximate basis only.
When should EPF funds be withdrawn? (Best time for EPF Withdrawal)
A.K. According to Shukla, EPF may be your savings, but it is for after the age of 60. That is why it is called Retirement Fund. If there is no financial crisis in front of you or it is not very important, then PF money should not be withdrawn. At present, 8.1 percent interest is being received on the EPF account. This is the highest interest as compared to FD, RD, Small Savings. This is the reason why more people voluntarily put money in EPF account. The more you invest in EPF, the higher the interest, the more benefit you will get. However, in Budget 2021, the interest earned on investments above Rs 2.50 lakh has now been brought under the tax net. But, still investing in it has its own advantage.
What is the rule of EPF deduction? (How much EPF deducted from salary)
According to EPFO, 12% amount is deposited in PF account from every month’s salary of the employed person. The same amount is also deposited in the PF account of the employee by the employer. Money is deposited in two parts in the EPF account. The first is deposited in PF and the second part is of pension. 8.33 percent of the employer’s contribution is deposited in the pension, its maximum limit is currently Rs 1250. Compounding interest is available on the money deposited in PF. According to the rules of EPFO, EPF money can be withdrawn even before retirement. But, some conditions have been fixed for this.
