14-Jul-2015 Source Economic Times

Move to stop premature withdrawals will ensure social security for workers in old age.

The government is planning to put a cap on premature withdrawal of provident fund (PF) money. The move is aimed at ensuring social security for all in old age.

The Employees’ Provident Fund Organisation (EPFO) has proposed that an employee be allowed to withdraw only 75% of the overall kitty, instead of 100% as permitted under the existing Employees’ Provident Funds Scheme, 1952, in case of resignation from a job or for any other use before retirement.

This is  a clear indication that retirement is a major challenge to be faced when you cross the age of 60. My request to my clients is to build a proper road map to your retirement which has to be continuously monitored and actioned.

Please write to me or speak to me, where we can sit for a cup of tea and discuss your road map for your retirement plan.

Thank You.