This is the biggest question that every employee wants to know who have an EPF Account. That should I Withdraw PF or Transfer PF, and today, we’ll discuss and let you through complete information so that you can decide whether you want to go with Withdraw PF or Transfer PF.
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Having an EPF Account can be so beneficial & we can say, one of the best social security schemes right after the retirement. and Employees Provident Fund Organisation is making it more digital day by day, Slowly, everything is becoming digital i.e. Get UAN Online, . But, one thing where every employee gets stuck is The decision of Withdraw PF or Transfer PF.
Circumstances Where Employee Gets Stuck In Withdraw PF or Transfer PF
Most of the time where an employee used to stuck is the time he/she has resigned to their job OR changing their Job. That time, is they confused to go with Transfer or Withdrawal.
Most of the employees go with Withdraw PF when they left their jobs. But in this case, the employees are only allowed or eligible to withdraw their PF Amount only after Two months from their last working date.
Even the EPFO Itself, suggest employees to not to withdraw money for no big reason. We all know that once the employee has crossed the 58 years of age, He/she will get monthly pension amount along with their PF amount.
Why? because the main purpose of the EPFO scheme is to give a security to all the employees under EPFO at the time of their retirement.
Now, When you know everything. Let’s talk about the biggest question, Which one is better?
Withdraw PF or Transfer PF ?
As we’ve already told you that even the EPFO recommends that one should not withdraw PF for small reasons. Withdraw it when you really needs it because it can not be a good practice.
Recommended Read – EPFO New Rules For PF Holders? – More PF fund During Retirement?
When Should I Withdraw PF?
There must be several major reasons, i.e.
- You want to build your own business and are no longer to do work for someone else, then you should withdraw your PF amount.
- Your time after the last day you’ve gone to your service till now is too much, then you should apply for the same.
You need money in the emergency, i.e.
- For medication, Hospitality or anything in which you’re stuck in and you have no other option, Then you can apply for PF Withdrawal.
Can I Withdraw My Pension Along With My PF Money?
- The employees can not withdraw the Pension money after the continuous 10 years of contribution.
- The pension amount will be released right after the employee attaining an age of 58 years.
- When the member completed the 10 years of service, Her/she will get scheme certificate, and that certificate will be used in order to get the pension amounts after the age of 58 years.
When I Should Not Withdraw PF?
There can be many reasons, but one of the major reason that we can tell you is that if you’re no longer working with your organisation and think to change your organisation, Then we highly recommend you to Transfer Your PF Money not withdraw PF.
Final Words For Withdraw PF or Transfer PF
Now when you know everything about the Withdraw PF or Transfer PF. We hope you are now on a single boat and not on the 2 boats.
Need More Information? Let us tell you some of the Benefits of Transfer PF
- The Biggest benefit is the Interest that the employee will get on their PF amount, Which is tax exempted.
- Most of the people must know that under the employee pension scheme 1995, the member will get pension amounts when he/she completes the 10 years of contribution.
- Loans can also be taken under this. (i.e. For Home, Education, Marriage & more)
- Insurance Cover will be given to the survivor of a deceased member of up to 6 lakhs. All this will be given under EDLI scheme 1971
We hope, this information might be helpful for you and we as EPFOSCHEME.IN ensure that you will get all information that you deserve.
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