EPFO members can withdraw entire provident fund or pension savings
Big update from EPFO: retirees can now withdraw their entire provident fund or pension savings, no strings attached.
For everyone else, up to 75% of your PF can be taken out early for things like medical bills, education, or buying a home, but you'll need to wait 12 months after leaving your job for a full withdrawal, and 36 months for pension money.
The idea is to help you out in emergencies but still protect your retirement savings for the long haul.
Why the changes? The numbers don't lie
About 50% of EPFO members have less than ₹20,000 saved up, and 75% have less than ₹50,000, and a lot of people cash out early, missing out on pension benefits.
In 2022-23 alone, 31.1 lakh members lost their pension eligibility because they withdrew too soon.
These rule tweaks are meant to help you keep more for the future, so you're not left stranded when retirement actually comes around.