Now Reading: EPF interest stops three years after retirement, EPFO says
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EPF interest stops three years after retirement, EPFO says
The Employees' Provident Fund Organisation (EPFO) stops crediting interest to an EPF account three years after a member retires at 58, news.abplive.com reports, citing EPFO's FAQ. After this period, the account becomes…
The Story in Brief
The Employees' Provident Fund Organisation (EPFO) stops crediting interest to an EPF account three years after a member retires at 58, news.abplive.com reports, citing EPFO's FAQ. After this period, the account becomes inoperative but the balance remains safe and can be claimed later. Meanwhile, regular contributions and compounding can build a substantial retirement corpus, according to Adhil Shetty, CEO of Bankbazaar, quoted by Livemint. He said a Rs 3,000 monthly contribution at 8.25% interest for 30 years could grow to around Rs 47 lakh. The key is to stay invested and avoid premature withdrawals.
The Indian Opinion
The idea that EPF will keep growing forever after retirement is a costly myth. While compounding works wonders during working years, the three-year interest cap after retirement means leaving the corpus untouched can cost you future returns. Equally, the 'withdraw everything' camp ignores the tax benefits and safety of EPF. The real test: check your retirement date and plan your EPF withdrawal or transfer before the three-year window closes. Will you act before the interest stops?
Sources (2): news.abplive.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
