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PF Fund: Withdrawal of PF money after leaving job, then you will deal with loss, not profit, know the reason

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PF Withdraw at Home: You can withdraw PF money sitting at home, know the step-by-step process

Even after you leave your job, the interest on PF keeps on getting and the interest on PF is more than your FD and all other deposit schemes.


Many times people withdraw full money from PF account after losing their job or after changing jobs. But this is not a wise decision in the real sense. Due to this, your savings amount is not only spent, but you also suffer losses in many ways. If you need a lot of PF money, then try to fulfill your need in some other way, but avoid withdrawing PF money. Know here what happens?

Withdrawing money from PF would cause this loss
Economic affairs expert Shikha Chaturvedi says that withdrawing PF money is a loss deal because even after you leave your job, interest on PF keeps on getting and PF interest is more than your FD and all other deposit schemes. In this way your money keeps on increasing. Apart from this, if you withdraw the PF money, then the continuity of the pension scheme also ends. Therefore, it is better that with getting a new employment, you should transfer the entire PF amount of the old company to the new one. This is considered a continuation of the service. Due to this, there is no obstruction in the pension scheme.

Interest is available for 3 years after retirement
If you do not withdraw the PF money immediately even after retirement, then you keep getting interest for three years. After three years it is treated as inactive account. According to Shikha, the amount of PF not only comes out in the form of better savings for you, but due to it being tax free, it is a better option to invest. However, it is taxable if you withdraw PF before 5 years. Try to run it for a long time.

Rules for withdrawing money from PF

  • Usually, the entire PF amount can be withdrawn only on retirement after attaining the age of 58 years.
  • If a person remains unemployed for two months, then the entire amount of PF can be withdrawn, whereas 75 percent of the money can be withdrawn after one month of leaving the job.
  • You can withdraw full PF money even after working continuously for 10 years or a little less.
  • PF money can be withdrawn during medical emergency.
  • If you have worked for 7 years, then you can withdraw up to 50% for children’s education or marriage.
  • To buy a plot, any person can withdraw PF money up to a maximum of 24 times of his salary. But for this, his job experience of up to 5 years is necessary.
    If you are 54 years old, then you can withdraw up to 90 percent of the total PF balance.

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