EPFO or Employee Provident Fund Organisation has rolled put an update recently. In that the first and foremost thing which is liked by many is that you cab withdraw the PF amount almost instantly. Previously it used to take weeks or months to get your money but now the process is streamlined and the money can hit the account in weeks.
PC: Google.com
Though this us a great update, but with this there is one more update is to lock 25% of your Fund until retirement. This again is a great thing because then the money will give you financial stability at the time of retirement. And since EPFO gives more than 8%, your money will also compound until retirement. So now if you have any medical emergencies, or you have to pay for your down payment or for your kids education, you can withdraw a huge amount from PF within days.
With this change I feel all the people will have some money at the time of retirement which is a good thing. I know getting 8% is not great but something is better than nothing. People might not even invest but through PF they are forced to invest in and thus that gives them the financial stability.
I have been working for more than 10 years now and I have sizable PF corpus and thus if I continue to work till the age of 60, it will be a huge sun. Now the best thing about it is, the interest is 100% tax free so it's better than the Fixed Deposit. And it can fulfill that debt component in your portfolio. Even if you are not investing into any debt instrument and only investing in equity. That's fine because you have PF for debt. And with the new withdrawal which takes weeks, you don't have to worry about the debt any more.
