Profit Sheets

PF withdrawals may impact your retirement savings

June 1, 2021 04:18 PM

PF withdrawals may impact your retirement savings
PF withdrawals may impact your retirement savings; As many people are opting to withdraw money from their provident fund,

PF withdrawals may impact your retirement savings; In order to provide a helping hand to people facing financial difficulties amid the second wave of covid-19 pandemic, the government has allowed Employees’ Provident Fund Organization (EPFO) members to make one more withdrawal from their provident fund account.

Last year, in March, the government had announced this facility, which gave the employee the option to make a non-refundable withdrawal of either basic wages of three months plus dearness allowance, or 75% of the balance, whichever is lower.

According to EPFO, it has settled Rs2,367,65 crore covid claims under Pradhan Mantri Garib Kalyan Yojana (PMGKY). As per the data 740,000 claims were made under the scheme.

PF withdrawals may impact your retirement savings; As many people are opting to withdraw money from their provident fund, experts are advising them to be mindful of the fact that this will impact their retirement savings.

Also Read: Paytm shares go past Rs21,000 in grey market

“It is not recommendable to withdraw funds from long-term savings meant for retirement. Withdrawing from provident funds would mean losing out the compounding effect on your savings and you may not be able to achieve the desired corpus required at the time of retirement,” said Rishad Manekia, founder and MD, Kairos Capital.

Provident fund money shouldn’t be your first choice when in need of an emergency. In case you have fixed deposits or other investments which are more liquid, you can opt for them. In fact, to tide over such emergencies, it is important that you have an emergency fund.

Leave a comment

Your email address will not be published. Required fields are marked *

Market Live Updates


Intraday Tips
Stock Name Open Price Trend Details
Reliance 1930.10 Buy  Click Here
Asian Paints 2577.00 Buy  Click Here
HDFC 2448.00 Buy  Click Here
HDFCAMC 2790.00 Buy  Click Here
TCS 3120.00 Buy  Click Here


NSE Top Gainers/Losers
COMPANY LTP %CHNG VOLUME
ONGC 170.15 3.84 3,35,17,100
TATAMOTORS 520.60 1.92 1,95,14,261
COALINDIA 163.85 1.90 1,01,45,393
UPL 812.60 1.69 20,45,635
HINDALCO 504.35 1.68
51,48,604
COMPANY LTP %CHNG VOLUME
ASIANPAINT 3,278.85 -2.81 13,35,732
SHREECEM 26,422.25 -2.70 43,795
INFY 1,870.00 -2.64 46,24,748
HINDUNILVR 2,308.95 -2.56 19,45,688
ADANIPORTS 743.60 -2.54
53,57,099