New Delhi: If you are a salaried employee, then the Employee Provident Fund (EPF) can prove to be a good investment option for you to create a retirement fund. With a fixed salary and numerous expenses, compounded by rising inflation that affects the cost of essentials, financial stability can be challenging to achieve. Therefore, it’s crucial for employees to maximise their benefits in different investment schemes. EPF ensures a substantial lump sum ensuring financial security without monetary concerns. With the help of an EPF calculator, you can check how your modest monthly contributions can grow into substantial sums, provided the account holder maintains discipline.
EPF calculator
By investing Rs 5000 monthly into a provident fund with an annual interest rate of 8.25 per cent for a duration of 35 years, the maturity amount is projected to reach Rs 1,18,33,963.13. This long-term investment shows the power of consistent monthly contributions and the compounding effect of interest over several decades, providing a substantial sum upon maturity.
EPF benefits
The Employees Provident Fund (EPF) scheme offer several benefits to account holders. Firstly, it helps in building a savings corpus steadily over time. Secondly, it serves as a crucial avenue for funding retirement and ensuring a comfortable post-retirement lifestyle. Unlike other investments, EPF does not require a lump sum initial investment; instead, regular monthly contributions from your salary accumulate to form a substantial corpus by the time of retirement. Additionally, EPF contributions qualify for tax concessions, providing savings on income tax. Moreover, the EPF acts as a financial safety net during emergencies, allowing members to withdraw funds under specific circumstances.
How to apply for EPF account?
As for applying for PF in India, employees are enrolled at the discretion of their employers, who manage the entire process. For business owners looking to enroll, their company must be a registered entity engaged in activities listed in Schedule 1 of the EPF Act, with a minimum workforce of 20 employees. Required documentation must be furnished to complete the enrollment process under this scheme.
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If you are a salaried employee, then the Employee Provident Fund (EPF) can prove to be a good investment option for you to create a retirement fund. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
