Avoid withdrawing money from PF funds if you do not need money, as this can be a big loss to your retirement fund.

 Avoid withdrawing money from PF funds if you do not need money, as this can be a big loss to your retirement fund.

    EPFO facilitates advance withdrawals on EPF account holders' relief

The Employees Provident Fund Organization (EPFO) has once again launched the Covid-19 Advance Scheme. Under this, EPFO ​​subscribers can withdraw up to 3 months salary from their provident fund. This money is not to be returned to you. However, the benefit of this scheme should be availed only if required. This is because withdrawing money from a PF fund can cause huge losses to your retirement fund.

What is a skim?

EPFO has given relief to EPF account holders and facilitated advance withdrawals on their deposits. To this end, the EPFO ​​amended the EPF Scheme-1952, stating that employees can withdraw up to 75% of the amount deposited in their accounts or the equivalent of three months' salary. Employees can use this money for their needs and will not have to repay it. Any employee can avail this facility.

Do not withdraw money from PF fund if not required

According to experts, avoid withdrawing money from PF unless necessary. It is earning interest at 8.5%. The larger the amount withdrawn from the PF, the greater the impact on the retirement fund.

Your retirement fund will suffer huge losses

According to estimates, if you have 30 years left in your retirement and now you withdraw Rs 1 lakh from your PF account, it will affect your retirement fund by Rs 11.55 lakh. Find out here how much money will affect the retirement fund.

How much less will you get after 20 years (Rs.) How much less will you get after 30 years (Rs.)

10 thousand 51 thousand 1 lakh 16 thousand

20 thousand 1 lakh 02 thousand 2 lakh 31 thousand

50 thousand 2 lakh 55 thousand 5 lakh 58 thousand

1 lakh 5 lakh 11 thousand 11 lakh 55 thousand

2 lakh 10 lakh 22 thousand 23 lakh 11 thousand

Note: This table is given approximately. Apart from that, the interest is calculated on an annual basis in the table given here.

  Read Report

7.4 lakh people have benefited

76.31 lakh advance claims have been settled so far under this scheme of EPFO. A total of Rs 2.37 lakh crore has been transferred to the bank accounts of the subscribers.