EPFO Interest: What can be your monthly EPF contribution to build Rs 1.5 cr, Rs 2.5 cr, Rs 3.5 cr retirement corpus; know calculations
The EPFO program pays pensions to its participants once they reach the age of 58. However, a member must be at least 50 years old to receive an early pension under the EPFO system. However, for a normal pension, the age must be 58.
The Employees' Provident Fund (EPF) is a government-backed savings scheme for salaried employees. Employees and their employers contribute to this scheme every month.
Interest rate
Every year, the government decides on the interest rate for EPF.
What is the current interest rate on EPF?
Currently, EPFO is giving an interest of 8.25 per cent annually.
EPF helps to secure future financially
It is an excellent way to secure one's financial future.
EPFO- Pension age
The EPFO program pays pensions to its participants once they reach the age of 58.
Early pension
A member must be at least 50 years old to receive an early pension under the EPFO system. However, for a normal pension, the age must be 58.
What if someone seeks a pension after turning 58?
If an EPFO member defers pension for two more years, he or she will get an extra 4 per cent every year.
Eligibility for pension
One of the prerequisites for receiving EPF benefits is to complete 10 years of service.
Minimum/mandatory contribution in EPF by an employee
The minimum contribution by an employee should be Rs 1800 per month and the maximum is 12 per cent towards EPF.
What can be your monthly contribution to build a Rs 1.5 crore corpus?
To get Rs 1.5 crore on retirement, one needs to contribute Rs 6,400 per month for 35 years. On maturity, you will get a total of Rs 1,51,47,472.81 at current interest rate of 8.25 per cent.
What can be your monthly contribution to build a Rs 2.5 crore corpus?
To get Rs 2.5 crore on retirement, one needs to contribute Rs 10,600 per month for 35 years. On maturity, you will get a total of Rs 2,50,88,001.8 at the current interest rate of 8.25 per cent.
What can be your monthly contribution to build a Rs 3.5 crore corpus?
To get Rs 3.5 crore on retirement, one needs to contribute Rs 12,500 per month for 37 years. On maturity, you will get a total of Rs 3,50,05,925.84 at the current interest rate of 8.25 per cent.