The stock markets are crashing. And now they are rising. Result? A huge number of investors have lost thousands of crores of rupees. If you don’t want this to ever happen to your money, make sure you turn to safe investment options like the Public Provident Fund, bank fixed deposits, bank recurring deposits and yes, your Employees’ Provident Fund (EPF) too. Notably, not many pay heed to their EPF money and start withdrawing it as soon as they can. However, that is a big loss for them. Ideally, if an employee wants to build his wealth up for retirement, he should simply make sure that no EPF withdrawals are made throughout his working years. Also, he should ensure that whenever he changes jobs, the EPF account should be updated or else, there will be trouble later in life. How important is EPF in an employee’s life? Let us explain what a huge windfall is possible because of the high EPF interest rate of 8.25% that is currently available.
Notably, the earlier an employee enters the world of the Employees’ Provident Fund Organisation (EPFO), the better. Let us take an example of a fictitious employee and assign some assumptions to him.
With the EPF interest rate of 8.25%, assume that the employee starts working at the age of 20 at a salary of 35000. Add to that the employer’s 3.67% contribution on the employer’s part. After inserting the numbers into the EPF calculator, the result reveals that the employee would have accumulated as much as Rs 48,338,708.
Among the most important assumptions is that the employee will not withdraw any money and the funds will keep on flowing till the day of retirement. The critical takeaway is that the EPF contributions were able to create immense wealth for the employee without him really having to do any extra labor for it.
The current EPF interest rate of 8.25% beats bank fixed deposits and is very safe. An employee can look forward to some awesome returns in the long run. Here we look at how to turn Rs 35000 pay into over Rs 48 lakh. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
