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Withdrawn EPF at 38, No Retirement Savings: Can I Recover?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 16, 2025

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Apr 16, 2025Hindi
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Money

I had to survive during the lockdown, so I withdrew everything from my EPF about Rs 6 lakhs. I told myself I'd replace it later. But now I'm 38, with two kids and zero retirement savings. I feel like I made the biggest mistake of my life. Can I realistically rebuild in time?

Ans: Hello;

No need to panic. That was your need at that point of time so it's okay.

First and foremost open an NPS account for retirement planning. It allows very limited withdrawals.

Invest in it as much as possible. You can also set-up monthly regular investment into NPS through D-remit feature.

Even if you invest 25 K per month in NPS you may expect a corpus of 1.8 Cr at the age of 60 assuming modest return of 8%.

Best wishes;
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

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Mutual Funds, Financial Planning Expert - Answered on Oct 28, 2024

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I retired from service at the age of 60 in June 2024, and I want to start working again now in Nov 2024. How to continue with EPF after this 4 month gap in my contribution to EPF.
Ans: Returning to work after retirement is a thoughtful decision. You can definitely continue your Employees' Provident Fund (EPF) contributions. Here’s how to proceed after your four-month gap in contributions.

1. Understanding EPF Contributions
The EPF scheme is a savings scheme for employees in India. Both employees and employers contribute to this fund.

Employee Contribution: A part of your salary goes into EPF.

Employer Contribution: Your employer also contributes to your EPF account.

These contributions build your retirement savings.

2. Continuation After Retirement
After retiring, if you start working again, your EPF account can remain active. Here's how to continue:

Rejoin a Recognized Establishment: Ensure that the new employer is registered under the EPF scheme. This is essential to restart contributions.

New EPF Account or Old One: You have the option to either use your old EPF account or open a new one. Using your old account is usually more beneficial.

Inform Your New Employer: Share your EPF account details with your new employer. This allows them to deduct EPF contributions from your salary.

3. Managing the Gap in Contributions
The four-month gap in your contributions will not negatively impact your EPF account. Here’s why:

Account Status: Your EPF account will remain active even without contributions during the gap.

Interest Accrual: Your EPF account continues to earn interest during the gap. This helps grow your savings.

4. Contributions Resumption Process
Once you rejoin the workforce, follow these steps to resume contributions:

Complete KYC Formalities: Ensure that your Know Your Customer (KYC) details are updated with the EPF office. This includes your bank details and personal information.

Salary Structure with EPF: Discuss the salary structure with your new employer. Confirm the percentage of your salary to be contributed to EPF.

Monthly Contributions: Begin regular monthly contributions to your EPF account once you start receiving your salary.

5. Benefits of Continuing EPF Contributions
Continuing your EPF contributions offers several advantages:

Tax Benefits: Contributions to EPF are tax-deductible under Section 80C of the Income Tax Act.

Compounding Growth: The interest earned on your EPF contributions is compounded annually, enhancing your savings.

Retirement Security: Continued contributions increase your retirement corpus, ensuring a secure future.

6. Retirement and EPF Account Management
Managing your EPF account wisely is crucial. Here are some tips:

Monitor EPF Balance: Regularly check your EPF balance. This helps you track your savings.

Use the EPF Portal: Utilize the EPF online portal for updates on your account. This makes managing your account easier.

Know the Withdrawal Rules: Familiarize yourself with the withdrawal rules. Understand when and how you can access your funds.

7. Financial Planning for Your Future
Incorporating EPF contributions into your overall financial plan is essential. Consider the following:

Assess Monthly Needs: Calculate your monthly expenses to determine how much you need to save.

Diversify Investments: Beyond EPF, consider diversifying your investments for better returns. Explore mutual funds, fixed deposits, or other instruments.

Emergency Fund: Maintain an emergency fund to cover unforeseen expenses. This ensures your EPF savings remain intact for retirement.

8. Exploring Other Retirement Options
If you're considering other retirement savings options:

National Pension Scheme (NPS): This provides an additional avenue for retirement savings. NPS is tax-efficient and offers market-linked returns.

Mutual Funds: Actively managed funds can provide higher returns compared to traditional savings. They can help you reach your financial goals faster.

Stocks: Investing in equities can offer growth potential. However, consider your risk tolerance before investing.

9. The Importance of Regular Monitoring
Continuously monitoring your EPF account and investments is key:

Review Contributions: Regularly check if your contributions align with your financial goals.

Adjust as Necessary: Be prepared to adjust your contributions based on changes in your financial situation.

Consult a Certified Financial Planner: If you have questions, consider seeking advice from a Certified Financial Planner. They can help tailor a financial strategy that fits your needs.

10. Tax Implications of EPF
Understanding the tax implications of your EPF account is essential:

Tax-Free Withdrawals: Withdrawals from your EPF account after retirement are tax-free if you meet the conditions.

Interest Earned: The interest earned on your EPF contributions is also tax-free.

Monitor Tax Changes: Stay updated on any changes in tax regulations related to EPF.

11. Preparing for Future Financial Goals
As you transition back into the workforce, keep an eye on your long-term financial goals:

Retirement Goals: Assess if your current savings will meet your retirement needs.

Child’s Education: Plan for your child’s future education expenses, if applicable.

Healthcare Planning: Ensure you have adequate health insurance to cover potential medical expenses.

12. Engaging with EPF Community
Joining the EPF community can provide insights and support:

Online Forums: Participate in online forums or social media groups related to EPF. This can provide helpful tips and shared experiences.

Attend Workshops: Look for workshops on retirement planning and EPF management. These can deepen your understanding and empower you.

13. Seeking Professional Guidance
If you need help navigating your financial journey, professional guidance can be beneficial:

Certified Financial Planner: Consult a Certified Financial Planner for a personalized plan that meets your needs.

Regular Reviews: Schedule regular reviews with your planner to adjust your strategy as needed.

14. Preparing for the Next Chapter
As you re-enter the workforce, embrace this new chapter. Keep a positive mindset and stay committed to your financial goals.

Stay Informed: Keep yourself updated about EPF rules and regulations. This ensures you make informed decisions.

Celebrate Milestones: Celebrate each milestone in your financial journey. This keeps you motivated and focused on your goals.

15. Final Insights
You can continue your EPF contributions after a brief gap. By rejoining a registered establishment and informing your employer, you can seamlessly resume your contributions. This will help grow your retirement savings while providing tax benefits. Stay proactive in managing your finances and explore other investment opportunities to secure your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

..Read more

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Hi , I am married since past 13 years. I am happy in my marriage. But from pat 1 month my ex came in my life. I tried to ignore him first, avoided him but somehow he entered my life. Now the situation is we talk everyday on call and wen we aren't talking on call than we are chatting with each other. Basically we talk with each other every minute. I really miss him in my life whereas he misses me more than me . He pushes me to meet up but till now I m restricting myself to not to meet him and limit myself on call. Now we both are each other's habit but somehow i feel all this is very wrong bcoz I hav a loving husband. And yes I forgot to mention he will be getting shortly divorced from his wife with whom he had an love marriage. Please help, what should I do ??
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Janak Patel  |59 Answers  |Ask -

MF, PF Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 12, 2025Hindi
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Hi.i am 40 years old.i have a son in std 3.my salary is 1.1 lac per month.i have 50 lakh fd.epf 2 lakh.liquid 2.5 lakh cash.pls suggest me for retirement
Ans: Hi,

You have about 15-20 years before retirement and that's a good time period to accumulate a good retirement corpus.

Your son's education will remain your priority during this period also. Assuming you can fund his education from your monthly income at least till his 10th/12 grade. You can decide on an amount for his graduation/post graduation that you want to provide to him. For example if you want to provide 10 lakhs when he is 18 years old, you will need to start investing a monthly SIP amount of 2000 in mutual funds assuming returns of 12%. So based on the amount required you can calculate the SIP amount required.

You have EPF of 2 lakhs which is not sufficient today but assuming you continue contributions and after 15 years this can be a considerable amount. But still may not be sufficient for retirement, so you can consider it as part of/contribution to your retirement.

So lets look at your FDs - you have 50 lakhs in FDs. Even at 7% interest on them you are not going to beat inflation as you will need to pay tax on the interest income.
This money has a potential to earn better returns and not just beat inflation, but also create a retirement corpus which can be sufficient for 20 years (this depends on your expenses also).

If you split this 50 lakhs and keep 5 lakhs in FDs for emergencies, you can invest the remaining 45 lakhs to create a good corpus.
If you invest 45 lakhs in Mutual funds and assuming a return of 12% over 15 years, you will have a corpus of approx. 2.70 crores.
With 15-20 years for retirement, you have an advantage to achieve your goals.

Though these numbers may look good now, they have to be evaluated with all other parameters like your monthly expenses, other goals in life, Son's education needs etc.

I recommend you consult a CFP or a fee based advisor and discuss all aspects towards a financial plan that will cover Retirement and all other goals. The Plan will help you better prepare for the future and provide alternatives and options and a clear roadmap towards achieving them. It will also cover aspects of health and life insurance.

Thanks & Regards
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Nayagam P

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Career Counsellor - Answered on Jul 15, 2025

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Hello,i would like to know my college options on the basis of my mht cet score of 92 (domicile student) percentile and jee 91 percentile general category in maharashtra can anyone give few suggestions of any tier 2 colleges?
Ans: Apoorvadeep, With a 92 percentile in MHT CET (General?Home State) and a 91 percentile in JEE Main (General), you are well?positioned for admission to several reputable tier-2 institutions across Maharashtra. All listed colleges are AICTE-approved, NBA/NAAC-accredited, feature modern computing labs, experienced faculty, strong industry collaborations and placement cells with 75–90 percent branch-wise placement consistency over the past three years.

Colleges accessible via MHT CET counselling at 92 percentile:
Thakur College of Engineering and Technology, Kandivali East, Mumbai. Rajiv Gandhi Institute of Technology, Andheri West, Mumbai. Vidyalankar Institute of Technology, Wadala, Mumbai. Xavier Institute of Engineering, Mahim, Mumbai. Vivekananda Education Society’s Institute of Technology, Chembur, Mumbai. Atharva College of Engineering, Malad, Mumbai. Ramrao Adik Institute of Technology, Nerul, Mumbai. Bharati Vidyapeeth College of Engineering, Kharghar, Navi Mumbai. Sardar Patel College of Engineering, Andheri West, Mumbai. K. J. Somaiya Institute of Technology, Vidyavihar, Mumbai. MIT World Peace University, Kothrud, Pune. Pimpri Chinchwad College of Engineering, Pune. Vishwakarma Institute of Technology, Bibwewadi, Pune. Sinhgad College of Engineering, Vadgaon, Pune. AISSMS College of Engineering, Shivajinagar, Pune.

Colleges accepting 91 percentile in JEE Main through JOSAA/CSAB (All-India seats):
Indian Institute of Information Technology, Pune. Visvesvaraya National Institute of Technology, Nagpur. VNIT also admits via JEE Main. MIT World Peace University, Pune (All-India seats). G. H. Raisoni College of Engineering, Nagpur (All-India quota).

Recommendation: Prioritise Thakur College of Engineering and Technology, Kandivali East, Mumbai for its balanced curriculum, robust AI/ML labs and consistent 88% placement rate. Next, select MIT World Peace University, Kothrud, Pune for multidisciplinary exposure and strong All-India seat admissions. Then opt for Vidyalankar Institute of Technology, Wadala, Mumbai for its dedicated computing infrastructure. Follow with Pimpri Chinchwad College of Engineering, Pune for its industry tie-ups and reliable placements, and finally choose Indian Institute of Information Technology, Pune for a centrally recognised All-India JEE-admission pathway enhanced by smaller cohorts and focused research projects. All the BEST for Admission & a Prosperous Future!

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