Imagine everything is going calm and smooth. There is stability in your business, and you can easily meet your demands and needs. All spheres of life are going rhythmically. Suddenly you experience some unforeseeable circumstance that snatches all the relief and happiness. You are helpless, and the financial crisis eats you up. Such situation arising is a norm. Up and downs come, but one should always be prepared for the downs. This is where management of personal finances is highly relevant, especially the saving aspect. Saving money for emergency situations can protect you from unwanted situations like the financial crisis.
In current economic climate, saving is a must. And this is where Employee Provident Fund comes into play. It is a highly important tool which can act as a shield in emergency situations. It is also instrumental in retirement planning. EPF schemes can help you in the long run. When you are having a large or even a medium-sized family, it is pretty difficult to manage your monetary resources along with saving a considerable amount of money. Ensuring a healthy financial life after retirement can be doubtful. Under EPF pension schemes, a certain sum of money is allocated to the provident fund which can be utilised after you’re not fit to work. So keeping a check on your EPF balance is a must. UAN login can be used to access these accounts.
Emphasising the importance of EPF schemes, here are some benefits listed:
EPF comprises of two elements, provident fund and Employee Pension Scheme. Some percentage of employer contribution towards your provident fund goes to the pension scheme. However, the pension you receive depends on several factors. Contribution in EPS helps you to accumulate more pensions that you are going to receive later. According to the law, you can even get your EPS money along with your provident fund. Your family will receive the pension if you do not survive the period.
The time comes when you need money for special events. In this scenario, you can withdraw EPF funds but within a certain limit. In a case where you want to arrange funds for marriage, or for the education of yourself or children or sibling, you can withdraw up to 50 percent of the amount contributed. One more benefit is that you can utilise this opportunity up to three times in life. A condition imposed is that you need to be in the service for at least seven years to avail the benefit. Furthermore certain relevant documents need to be submitted before getting your hands on EPF money. You can even withdraw from your EPF account if you want to reconstruct your house or for its repair and maintenance. Similarly, there are some conditions attached to it.
There are benefits offered by EPF during medical emergencies. If you or your family is undergoing a major surgical operation, you can utilise the fund up to six times of your salary. There are other emergency cases involved as well like cases of natural disasters.
These were some of them. There are many death, insurance and tax benefits associated with EPF schemes. It is an absolute saviour.
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