Worker future fund group
If you’re employed, then each month some half out of your wage goes to PF i.e. Provident Fund. This cash is for the security of your future. This PF account can’t solely save pension after retirement, however for this it is vitally necessary to comply with some guidelines. If you happen to unintentionally withdraw the whole cash of PF, then the dream of pension may be damaged.
How a lot cash is deposited in PF?
Each month 12% of your fundamental wage is deposited in PF account. Not solely this, your organization additionally places the identical quantity from its treasure. Nevertheless, this whole cash doesn’t go to at least one place! Of the 12% of the corporate’s 12%, 8.33% share goes to EPS ie Workers Pension Scheme, and the remaining 3.67% in your EPF ie Workers Provident Fund. This EPS is the magical factor that provides you pension in retirement.
If EPS is eliminated, pension is not going to be accessible
You collected cash in PF with onerous work for 10 years. Now on the age of fifty, you might be anticipated to get pension. However in case you withdraw all the cash from PF whereas leaving the job or within the center and there was additionally part of EPS, then you’ll not get a single rupee as a pension. Withdrawing EPS cash implies that you misplaced the important thing of your pension. Many individuals take out the whole PF in a rush when altering the job or when wanted, and it’s incorrect right here. So subsequent time earlier than taking out PF, take a choice.
The best way to hold pension secure?
So now the query is tips on how to shield the pension? The reply is straightforward – don’t contact the EPS fund! If it’s a must to withdraw cash from PF, then solely withdraw the EPF half. Depart the EPS fund in the identical approach. By doing this, you’ll stay entitled to pension after the age of fifty years.
In line with EPFO guidelines, in case you have contributed to PF for 10 years or extra and don’t contact the EPS fund, then after the age of fifty you possibly can declare for pension. This pension will make your retirement simpler, so to dwell a golden day of life with out worrying.
Each financial institution will get pension!
EPFO has launched an excellent characteristic from 1 January 2025, which has made the way in which of taking pension simpler. Now you possibly can take away your pension from any financial institution. Earlier this facility was restricted to solely a specific financial institution, however now by way of digital verification you will get your pension from anyplace. Particularly for these individuals who have settled of their village or every other metropolis after leaving the job.