Now Reading: EPF interest stops three years after retirement at 58
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EPF interest stops three years after retirement at 58
The Employees' Provident Fund Organisation will credit interest to an EPF account for only three years after a member retires at age 58, after which the account becomes inoperative and stops earning…
The Story in Brief
The Employees' Provident Fund Organisation will credit interest to an EPF account for only three years after a member retires at age 58, after which the account becomes inoperative and stops earning fresh interest, ABP Live reports citing EPFO's FAQ. For members who stop working at or after 55, interest also stops after three years. The balance remains safe with EPFO and can be claimed later by the account holder or nominee, but no further interest accrues.
The current EPF interest rate is 8.25 per cent per annum. Withdrawals are tax-exempt after five years of continuous service. Retirees may consider alternatives such as the Senior Citizens Savings Scheme at 8.2 per cent or Post Office Time Deposits at 6.9 to 7.5 per cent for predictable post-retirement income.
The Indian Opinion
The EPFO rule sounds like a hidden penalty on those who delay withdrawal, yet the three-year grace period is generous by global standards. The lazy narrative that 'the government keeps your money' misses that the corpus is never forfeited. What retirees need to know: at 8.25 per cent, three years of compounding on a large balance is significant money. The real test is whether EPFO simplifies the claim process for inoperative accounts, because right now the paperwork deters many from claiming their own savings.
Source: news.abplive.com
This story was synthesised by AI from the source linked above.
