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How will PF partial withdrawal affect my EPS pension after 58?

Milind Vadjikar |1120 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 08, 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 - Mar 08, 2025Hindi

Dear PF Expert, My question is regarding the impact of partial withdrawal money from my EPF corpus. I quit my job in Feb 2023 (2 years ago) to work as a freelancer, after more than 18 years of service in the industry. To meet certain financial needs, I would like to make a partial withdrawal from my PF corpus. My questions : 1) How will this impact my EPS pension after I turn 58 years ? Since the Pensionable salary is dependent only on the average salary in the last 5 years of service and not on the outstanding corpus, the fact that I have withdrawn before retirement age of 58 shouldn't matter. Is my understanding correct ? Also, since my average Basic for the last 5 years of service was more than Rs. 15000 and I had 18 yeas of service, I should ideally get a monthly pension of 15000 * 18/70 = Rs.3857 (approx.) Please confirm if my understanding and calculation is correct (Of course, this is assuming that the formula will hold good when I eventually turn 58 to receive the pension) 2)If this is the only partial withdrawal that I would ever make, can I assume that the corpus that would be available for lumpsum withdrawal after I turn 58 would be : [Current Corpus - Partial Withdrawn Amount] * (1.0825) * 1 (EPF interest of 8.25 % and I have only one more year of interest accrual out of 3)? Please respond so that I can make an informed decision about my partial withdrawal

Ans: Hello;

Answers to your queries are as given below:

1. EPF partial withdrawal will have No impact on EPS.
The estimated monthly EPS pension seems okay.

2. Your assumption about net EPF corpus available to you after 58 is correct, in principal.

Best wishes;

Asked on - Mar 08, 2025 | Answered on Mar 10, 2025

Thanks Sir. Due to some technical issues, my entire question couldn't be posted. I just want re-confirm that making a partial withdrawal from my EPF account now will NOT affect my EPS pension amount in any way (as it is only dependent on my last drawn basic salary)

Ans: Hello;
Reiterating that EPF partial withdrawal will not have any impact on your EPS!
Best wishes;

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