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There will be no money problem in the last period.. EPFO will give!

Samayam | September 3, 2024 10:44 AM CST

Under a PF scheme you can accumulate a huge amount during your retirement. Here's how it works.

Employees' Provident Fund Organization (EPFO) is a good savings option for working people. It also helps the working worker to provide financial support and increase savings during retirement.

Under the PF scheme an amount is deposited as per the agreement of both the worker and the company. Out of which 24 percent amount is deposited in EPF account on both sides and interest is paid on the amount invested as per the rate of interest fixed by the government. Currently this interest rate is 8.25 percent per annum.

Many people do not know about the importance of PF scheme. PF interest not only provides financial security in old age but is also a great opportunity for our savings and investments. If you deposit an amount from your salary every month you can have a huge amount in retirement.

Now let's see how much pension amount we will get in this. For example, suppose the age of the worker is 30 years. If his basic salary is Rs 30,000 per month and his contribution is 12 per cent, he can accumulate around Rs 1.45 crore as pension fund when he retires at the age of 60.

Currently the interest rate is 8.25 percent per annum. But the above calculation is calculated at 8.1 percent interest rate only. So you will get a bigger amount than that. These calculations are only estimates. It depends on many things like pension fund basic salary, interest rate etc. This will be of great help in your retirement.

PF money helps us even when we are looking for a job. It helps to meet large monetary requirements like house construction, home enlargement, medical expenses, wedding expenses etc.