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PF withdrawal rules: subscribers lose up to rs 35 lakhs on retirement, you must know this

PF withdrawal: The rules for withdrawing money from the Provident Fund account have been simplified. But, this money is your retirement fund. Removing it again and again can cause you great harm.

PF Withdrawal: Provident Fund account is a savings account for us and also a retirement fund. But, employed people keep withdrawing money from this account from time to time. Perhaps few people know that by repeatedly withdrawing from the PF account, the retirement fund also goes on decreasing. According to EPFO, people withdrew the maximum funds during the Corona period. More than 71 lakh people have closed their EPF account. It is very important for you to know how much retirement fund gets reduced when money is withdrawn from PF account.Also Read: Good news: Delhi-Mumbai, Delhi-Howrah journey will now be completed in 12 hours, know everything




How much will Retirement Fund be less than PF withdrawal?

EPFO retired assistant commissioner A.K. According to Shukla, if you are 30 years old and have 30 years left in retirement and you withdraw Rs 1 lakh from your EPF account, it means that out of the amount received from retirement fund at the age of 60, Rs 11.55 lakh will decrease. Let us understand by calculation how much loss can be caused by premature withdrawal.Also Read:Save Rs 34 per day and get rs 26 lakh, know how should you invest in ppf

How much PF withdrawal What is the difference in the fund after 20 years What is the difference in the 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

 

When should I withdraw PF money?

A.K. According to Shukla, PF 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 If there is no financial crisis in front of you or it is not very important, then PF money should not be withdrawn.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, 8.5 percent interest is being available on the EPF account. This is the highest interest compared to small savings. This is the reason why more people also put voluntary money in the EPF account. The more you invest in EPF, the more you will get the benefit due to higher interest. However, in Budget 2021, interest earned on investments above Rs 2.50 lakh has now been brought under the purview of tax. But, still investing in it has its advantages.Also Read:How to check lpg cylinder subsidy in account, here is the process




How much is your EPF deducted?

According to the EPFO, 12 percent of the salary of the salaried worker is deposited in the PF account every month. The same part is also deposited in the PF account of the employee on behalf of the employer. Money is deposited in EPF account in two parts. 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.Also Read:Check your name in voter list on just one phone call information about, how to add also provided

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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