Should I Make Early Non-Refundable Withdrawals from My PF+VPF? (Central Govt Employee, 60 Lakhs)

Ans: With partial withdrawals from your PF account already done, and considering you're 59 and nearing retirement at 60, here's what you need to know about another withdrawal:

Partial Withdrawal Policy: The one-year before retirement policy for partial withdrawal applies to full withdrawals, not necessarily partial ones.
Current Regulations: Generally, after five years of service, you can make a partial withdrawal for specific reasons (medical, children's education, etc.). However, the specific rules and limitations can vary depending on your organization and the latest EPF regulations.
Here's what you can do:

Check Your Employer: Contact your HR department or the official managing your PF account. They can provide the most up-to-date information on your specific situation and eligibility for partial withdrawal.
Review EPF Withdrawal Rules: The EPFO (Employees' Provident Fund Organisation) website (https://www.epfindia.gov.in/) offers resources on PF withdrawals. Familiarize yourself with the current regulations.
Certificate for Retirement Age:

Not Usually Required: In most cases, your employer should have your retirement age documented in your service records. A separate certificate might not be necessary for your final PF withdrawal at 60.
Planning for Retirement:

Since you're close to retirement, consider these steps:

Calculate Retirement Needs: Estimate your monthly expenses to determine the required corpus for your golden years.
Review Other Retirement Savings: Factor in any other retirement savings you might have (pension, personal investments) for a holistic picture.
Consult a Financial Advisor: A professional can help you plan your post-retirement finances and ensure a smooth transition.
Remember, accurate information about your specific PF withdrawal options comes from your employer or the EPFO website.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: After cessation of employment at 62, the account will be classified as an "inoperative account." While it will continue to earn interest, it will be taxable. It's advisable to consider withdrawing or transferring the amount to a safer investment option before the tax implications kick in.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

You should withdraw your EPF corpus immediately and invest elsewhere.

After 3 continuous years of no contribution, except interest, the EPF account becomes inoperative.

If you have opted for deferred pension you may receive EPS pension after completing 60 years of age.