PF Withdrawal is not a profitable business, ₹ 1 lakh draw with ₹ 11.55 lakh loss

PF Withdrawal: Because of the contagious corona, many people have spent their accumulated capital over the years. Especially this had a big impact on employees.

New Delhi: Due to the PF Withdrawal-contagious corona, many people have spent their accumulated capital over the years. Especially this had a big impact on employees. Maximum support for prospective employees. According to EPFO, people withdrew maximum money during the Corona period. More than 71 lakh people have closed their PF account. It is okay to withdraw money during an epidemic, but most people withdraw money from their PF account at any time. It’s not okay. PF is a retirement fund and can be a huge loss by prematurely diluting it.

How much does a one-time PF draw with retirement funds?

EPFO Retired Assistant Commissioner A.K. According to Shukla, there are 30 years left for retirement and suppose you have withdrawn Rs 1 lakh from a PF account. In this case, once you draw ಹಣ 1 lakh, your retirement fund will be reduced by Rs 11.55 lakh.

PF withdrawal	How much will be lost 20 years later	How much loss after 30 years
50 thousand rupees	2 lakhs 5 thousand rupees	5 lakh 27 thousand rupees
1 lakh	5 lakh 11 thousand rupees	11 lakhs 55 thousand rupees
2 lakhs	10 lakhs 22 thousand rupees	23 lakhs 11 thousand rupees
3 lakhs	15 lakh 33 thousand rupees	34 lakhs 67 thousand rupees

 

If there is an emergency, PF money is not drawn with: Pros:

A.K. According to Shukla, EPFO according to the rules, if you retired at the age of 58 ( Retirement Fund ), comes this money appropriately. If you do not have any emergency, you should not withdraw funds from the prospective fund. Currently, 8.5 per cent interest is available on PF. This is the highest interest rate on all small savings plans. So, the more money you have in your account, the more interest you get. At the same time, if you withdraw money from a PF account, it will also affect your retirement fund.

Contribution to the Future Fund?

According to the EPFO, 12% of the employee’s basic salary and dearness allowance (base salary + DA) is credited to the PF account every month. There is also a contribution from the employer side. There are two types of benefits in a PF account. The first part of the EPF and the second part of the pension (EPS). 8.33 per cent of employer contribution is deposited in pension. At the same time, 3.67 percent will be deposited in future funds. Interest is earned on the basis of compounding all the money, that is, interest is made available on interest every year.