Check how much to save monthly in EPFO to get Rs 3 to 5 crore in retirement
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EPF or Employees’ Provident Fund (EPF) plays a vital role in securing your future and getting help in case of urgent need. It operates three main schemes: EPF (Employees’ Provident Fund), EPS (Employees’ Pension Scheme), and EDLI (Employees’ Deposit Linked Insurance Scheme). How much should you save monthly in FPFO if you want to get Rs 3 to 5 crore in retirement? Know more in today’s report
Benefits and Uses of EPFO
EPFO or Employees’ Provident Fund Organisation is an autonomous organisation that encourages employees to increase their retirement savings. Employees can withdraw partial amount from EPFO for certain expenses like higher education, marriage, house construction or medical expenses. It acts as an emergency fund for employees, especially in unforeseen situations. Moreover, EPF pays a fixed annual interest, which is currently 8.25% and no tax is levied on this interest.
How to save to get Rs 3 to 5 crore
A proper savings plan is very important to secure your future and fulfill your dreams. EPF can help you save a large amount of money in the long run, but it requires regular and planned savings.
Let’s see how you can increase your savings:To get Rs 3 crore: If your goal is to accumulate Rs 3 crore, you need to save Rs 8,400 every month for 40 years. If you save this amount, you will get around Rs 3,01,94,804 at the end of the period. This will act as a strong financial buffer during your retirement.
To get Rs 4 crore: To save Rs 4 crore, you need to save Rs 11,200 every month. If you save this amount over a long period, you will have around Rs 4,02,59,738 at the end of the period. This will help you live a comfortable life and help you implement big plans.To get Rs 5 crore: If your goal is to save Rs 5 crore, save Rs 12,000 every month.
If you save this amount, your savings at the end of the period will be around Rs 5,08,70,991. This will create a huge financial security for you and help you fulfill big future dreams.These savings schemes of EPFO help ensure your financial security, especially during retirement.
By making proper savings and timely investments, you can build a secure and comfortable future. Regular savings and planning of EPF will help you achieve financial freedom in the long run.