Withdrawal of PF money is not a profitable deal, with a withdrawal of ₹ 1 lakh, there is a loss of ₹ 11.55 lakh

PF Withdrawal: Due to the epidemic corona, many people have also spent their accumulated capital over the years. Especially it had the biggest impact on the employed.

PF Withdrawal: Due to the epidemic corona, many people have also spent their accumulated capital over the years. Especially it had the biggest impact on the employed. Provident Fund gave maximum support to the employed. According to EPFO, people withdrew the maximum funds during the Corona period. More than 71 lakh people have closed their PF account. It was okay to withdraw money in the event of an epidemic, but most people withdraw money from their PF account anytime. This is not correct. PF is a retirement fund, due to premature exit, there is a big loss.

How much will the Retirement Fund be with one-time withdrawal?

EPFO retired assistant commissioner A.K. According to Shukla, suppose there are 30 years left in retirement and you have made a withdrawal of Rs 1 lakh from the PF account, then your retirement fund will be reduced by Rs 11.55 lakh from this one-time withdrawal.

PF withdrawal	how much loss after 20 years	how much loss after 30 years
50 thousand rupees	2 lakh 5 thousand rupees	5 lakh 27 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 interest in the table has been calculated on yearly basis (current interest rate).

Do not withdraw if there is no emergency

A.K. According to Shukla, according to the rules of EPFO, when you retire at the age of 58, this money will come in handy. If there is no emergency with you, then you should not withdraw the Provident Fund money. At present, interest of 8.5 percent is being available on PF. This is the highest interest rate among all small savings schemes. Therefore, the more money you have in your account, the more will be the benefit of interest. At the same time, if there is a withdrawal from the PF account, then the retirement fund will have the same effect.

Contribution in Provident Fund?

According to the EPFO, 12 percent of the salary and dearness allowance (Basic salary + DA) is deposited in the PF account from the basic salary of the employee every month. There is also contribution from the employer side. There are two types of benefits in PF account. First part of EPF and second part of pension (EPS). 8.33 per cent of the employer’s contribution is deposited in the pension. At the same time, 3.67 percent is deposited in the Provident Fund. Interest is earned on the basis of compounding on the whole money, that is, interest is also available on interest every year.