Now PF money will be withdrawn in a jiffy: EPFO ​​is soon bringing the facility of withdrawal from ATM and UPI, but do not let the old age safe get emptied in a hurry! – ..

Crores of salaried employees of the country are going to get a very revolutionary and big gift from the Employees Provident Fund Organization (EPFO). In future, the lengthy paperwork required to withdraw emergency funds from PF (Provident Fund), the long process of online claim and waiting for weeks for money to be deposited in the bank account is going to end completely.

Just like you use Google Pay, PhonePe or any UPI App and ATM You can easily transfer money or withdraw cash from your PF account, now you will be able to withdraw funds from your PF account with the same ease. EPFO in its most modern and upgraded version ‘EPFO 3.0’ Under this, preparations are being made to launch the high-tech facility of PF Withdrawal through ATM and UPI very soon. However, while this simple digital system has countless benefits, financial experts have also warned employees about its far-reaching disadvantages.

Will easy withdrawal hurt the main objective of retirement funds?

PF fund is basically created with the aim of guaranteeing financial security in your old age after your job ends or after retirement and to create a big accumulation. At present, this fund is used only in times of huge needs like medical emergency, higher education of children or building a house.

Technical experts believe that as PF withdrawals are becoming easier and digital friendly, the speed of withdrawal of money can also increase rapidly. In such a situation, the question is bound to arise whether the very easy withdrawal system will hurt the main objective of long-term savings of PF? However, EPFO ​​clearly says that the purpose of bringing this new system is to create a transparent and digital friendly platform for the subscribers and not to promote pre-mature withdrawal. Quick and easy transactions will increase people’s trust in the financial system and participation of youth in PF.

Danger of weakening the stick of old age: 3 big disadvantages of withdrawing PF early

With the convenience of getting PF money in hand within a few minutes through UPI and ATM, people can free up their retirement funds even for small wishes or buying gadgets. According to experts, it can have 3 biggest and serious disadvantages:

• Big blow to pension fund: A certain portion of your PF contribution goes to the Employee Pension Scheme (EPS). If you keep withdrawing PF money repeatedly while working, then the amount of your monthly pension after retirement will reduce drastically, which will weaken the financial security in old age.

• Major Disadvantages of Compounding: The interest received on PF works on the magical formula of compounding. The longer your money remains safe with EPFO, the bigger and bigger the interest you will get on it. If you withdraw your money midway, you will lose this bumper compounding profit.

• Power to fight inflation is gone: PF is a stable and secure source of income to face rising inflation in old age. If you spend it early, ignoring your financial circumstances and long-term retirement goals, it will be very difficult to withstand inflation in the future.