Provident fund schemes for employed people provide a golden opportunity to build a strong fund for retirement and make regular investments. From this investment, employees can withdraw the entire amount after retirement.
Its purpose is to help employees financially after retirement. Under PF schemes, employees contribute a small part of their income every month and withdraw the total amount after retirement. However, you can also take it in the form of a pension. This scheme lays the foundation for your golden future.
Crorepati in 30 years
If you have been working continuously for 30 years, do you know how much money will be in your PF account? Today, through this news, we are going to tell you that if you are working continuously for 30 years and every month ₹ 7200 is going into your PF, then you can become a crorepati in 30 years.
If you invest ₹7200 in PF every month and get 8.25 percent interest on it, then within 30 years you will have ₹1,10,93,466.28. Not only this, along with depositing PF, you also get many services. It is a powerful investment.
Benefit of pension
PF money is deposited in two parts – EPF i.e. Employee Provident Fund and EPS i.e. Employee Pension Scheme. 12 percent of your salary is deducted, and 12 percent is given by the company. The pension fund is prepared from the contribution of the company.
However, the eligibility for pension is only after the age of 58, and for this, you must have at least 10 years of service. The minimum pension amount is ₹1 thousand. This scheme provides you with a stable income after retirement.
Benefit of nomination
Recently, EPFO has repeatedly asked the subscribers to make nomination for this facility. You can make anyone a nominee in your EPF account. If the PF account holder dies, the nominee gets the PF money. This facility provides financial security to your family.
Investment in VPF too
Apart from EPF, employees can also invest in VPF i.e. Voluntary Provident Fund. You can also make additional contributions over your basic salary in VPF. This option allows you to save more money for retirement.