If you work, every month a part of your salary goes to EPF. This money is useful at the time of your retirement. But many people have a habit of withdrawing their PF money from time to time. But do you know that doing this can cause problems at the time of your retirement?

Why is it important to save PF money?

PF is a profitable deal for your retirement. In this, you get 8.25% interest. If you withdraw money repeatedly, then you may have to suffer the loss of interest. Interest is received on the amount deposited in the PF account, which increases with time. Withdrawal of money repeatedly reduces the amount of interest, which affects the total savings.

Tax exemption

If you withdraw money from PF before five years, then tax can be levied on it. This can increase the tax burden on your total savings. The interest received from PF is tax-free. But there are some conditions for this, too. It remains tax-free only if you do not withdraw it for 5 years.

Decrease in retirement fund
The main purpose of PF is to provide financial support after retirement. Frequent withdrawals can reduce the amount available at the time of retirement, which can cause difficulty in living.

Problems at the time of retirement
By withdrawing money from the PF frequently, you may have to face many problems at the time of retirement. There is no source of regular income after retirement. If there is not enough money in the PF, then there can be difficulty in living. Health problems increase with increasing age, which costs money in treatment. If there is not enough money in the PF, then it can be difficult to bear these expenses.

This is where money will come in handy after retirement
The real purpose of PF is that when your earnings stop, you should have a good fund. With the help of which you can spend your old age comfortably. Therefore, it is very important for you to have savings in the era of rising inflation. Therefore, avoid withdrawing PF frequently.

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