There is a tendency to shift jobs in the private sector in two to three years. But with the job change, the loss of all the money from the former company’s PF is a loss-making business. With this, you not only eliminate the savings that are being made for a better future, but also the continuation of the pension plan. After joining a new company, it is best to join a new PF. If you don’t need the money even after retirement, you can leave the PF for a few years.
Experts say that even if employees quit or are fired for any reason, it is not wise to remove them immediately unless there is a need for a PF. In fact, even after leaving the job, interest on the PF continues and after getting a new job, it can be transferred to a new company.
If you start work a few months after leaving a job and transfer the entire PF amount of the old company to the new one, it will be considered a continuation of the service. In such a situation there will be no disruption to the pension scheme. Under the continuity provision of service, it is necessary to contribute equally to the facilities in order to receive the benefits.
You will get interest for 3 years even after retirement
If you do not withdraw PF money even after retirement, then interest will continue for three years. This is considered a passive account only after three years. Most people collect PF amounts as a future safe fund and this is a good investment option as it is tax free. In such a situation, running for the maximum amount of time is advisable.
KYC is necessary to withdraw funds
If you need to withdraw money from any need, having a KYC is very important. If a person has been unemployed for two months, he can withdraw the entire PF, but can withdraw 75 percent a month after leaving the job. If the tenure is less than ten years, a full pension may also be withdrawn. Generally, the entire amount of PF can be withdrawn after the age of 58 years.
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