If you do a job, then every month a part of your salary goes to EPF. This money is very useful at the time of your retirement. But many people have a habit of withdrawing their PF money from time to time. Do you know that doing this can cause problems at the time of your retirement? Yes, withdrawing money from PF frequently can be a danger signal for your future. So, why is it so important to save PF money? Know its 5 big disadvantages.
Withdrawals frequently will cause a huge loss of interest
PF is a very beneficial deal for your retirement. In this, you get interest up to 8.25%. If you withdraw money frequently, you may have to suffer a huge loss of interest. Interest is received on the amount deposited in the PF account, which increases with time. Withdrawing money frequently reduces the amount of interest, which affects your total savings. It is not wise to lose the golden savings of your future just like that.
If you withdraw before 5 years, you will have to pay tax
If you withdraw money from the PF before five years, then it may also be taxed. This can increase the tax burden on your total savings! The interest received from PF is tax-free, but there are some conditions for this, too. It remains tax-free only if you do not withdraw it for 5 years. Therefore, to avoid the hassle of tax, it is wise to save PF money for a long time.
Financial support will become weak in old age
The main purpose of PF is to provide financial support after retirement. Frequent withdrawals can reduce the amount available at the time of retirement, which can cause difficulty in living. When your earnings stop in old age, PF is your biggest support! By withdrawing it repeatedly, you are putting your future at risk.
You may have to face these problems at the time of retirement
By withdrawing money repeatedly from PF, you may have to face many problems at the time of retirement. There is no source of regular income after retirement. If there is not enough money in the PF, there may be difficulty in living. Health problems increase with increasing age, which costs money to treat. If there is not enough money in the PF, it may be difficult to bear these expenses. Therefore, it is very important to save PF money to spend your old age comfortably.
Savings are the biggest weapon against rising inflation
The real purpose of PF is that when your earnings stop, you should have a good fund. With the help of which you can spend your old age comfortably. Therefore, you need to save in this era of rising inflation. Therefore, avoid withdrawing PF frequently and secure your future. This is the biggest basis of your financial security.