PF news: Do not withdraw PF money immediately on changing jobs or retirement, you can avail interest for this many years
There is a trend of changing jobs in the private sector in two to three years. But with the change of job, taking out all the money of the former company’s PF is a loss deal. With this, you not only eliminate the savings being made for a good future, but also the continuation of the pension scheme. It would be better to join him with the new PF upon joining a new company. Even after retirement, if you do not need money, you can leave PF for a few years.
Experts say that even if employees leave the job or if they are fired for any reason, it is not wise to immediately remove the PF unless you are in desperate need of it. In fact, even after leaving the job, the interest on the PF continues and after getting a new employment, it can be transferred to a new company.
If you start a job a few months after leaving one job and transfer the entire PF amount of the old company to the new one, it will be considered as continuation of service. In such a situation, there will be no hindrance in the pension scheme. Under the provision of continuity in service, it is necessary to contribute at par with the facilities to avail the facilities.
Even after retirement, you get interest for 3 years
If you do not withdraw PF money even after retirement, then the interest continues to accrue for three years. It is considered a passive account only after three years. Most of the people collect the amount of PF as a future safe fund and it is a good investment option as it is tax free. In such a situation, it is sensible to run for maximum time.
KYC is necessary to withdraw money
If you have to withdraw money due to any need, then having KYC is very important. If a person remains unemployed for two months, he can withdraw the entire amount of PF, while 75 percent of the money can be withdrawn after one month of leaving the job. If the tenure is less than ten years, then the full amount of pension can also be withdrawn. Generally, the entire money of PF can be withdrawn only after attaining the age of 58 years.