People invest in different places for retirement. But if you do not want to invest separately then EPF can come in handy. Employees’ Provident Fund gives an opportunity to employees that if they invest some part of their salary in EPF, then you can get a good return at the time of retirement. According to experts, if your basic salary is 20,000 and 24% (12% employee + 12% employer) EPF invests from the age of 25, then Rs 4800 will be invested every month. If you keep investing continuously for 25 years, then you can get a corpus of 2.79 crores on retirement.
Here’s how to prepare Retirement Fund
While investing in EPF, you are given an interest rate of 8.5%. If you follow the 7 percent salary hike, then from the age of 25, the investment can be like this.
If the basic salary is Rs 20,000 at the age of 25 to start investing, then you can get Rs 2.79 crore at the time of retirement. Similarly, if the salary is Rs 28,051 at the age of 30, then 2.30 will be available at the time of retirement. If the salary is Rs 39,343 at the age of 35, then Rs 1.85 crore will be available at the time of retirement. If you start investing from the age of 40, then on a basic salary of Rs 55,181, you will get Rs 1.42. At the age of 45, the basic salary is Rs 77,394, so you will get Rs 1.03 crore. At the same time, at the age of 50, the basic salary is Rs 1,08,549, then you will get 66.44 lakhs at the time of retirement.
Keep these things in mind
- Do not withdraw money from EPF unless there is an emergency. If you withdraw money in the middle, then you may not get this benefit in full.
- By withdrawing money again and again, old age will be saved.
- Withdrawal of a few thousand leaves lakhs of dents on the retirement fund.
- If you withdraw Rs 1 lakh from the PF account at the age of 30, then at the age of 60, Rs 11.55 lakh will be reduced from the retirement fund.
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