EPF Retirement Corpus Calculation: What should be your estimated EPF contribution to generate Rs 1 crore, Rs 2 crore or Rs 3 crore funds?
Retirement Planning: EPF offers an 8.25 per cent annual compound interest rate to its subscribers. Deposits up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, the interest earned, and the maturity amount are tax free under the scheme.
EPF Calculator: Employees' Provident Fund (EPF) is a retirement scheme where both the employee and the employer contribute monthly to the employee's EPF account. At the age of 58 years, the EPF subscriber can withdraw their EPF amount. Apart from it, they will also get a monthly pension under the Employee Penson Scheme (EPS). They can contribute to their EPF account till the age of 60 years. Here, we tell you what should be your estimated monthly contribution to get an EPF retirement corpus of Rs 1 crore, Rs 2 crore, or Rs 3 crore.
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EPF interest rate 2024
EPF offers an 8.25 per cent annual compound interest rate to its subscribers.
EPF tax benefits
Deposits up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, the interest earned, and the maturity amount are tax free under the scheme.
EPF conditions
We assume one to start contributing to their EPF account from the age of 25 years till the age of 58 years or 60 years whenever their achieve their retirement corpus goal. So, the investment period will be 33-35 years.
What to do to get Rs 1 crore retirement corpus
If one is aiming for Rs 1 crore corpus in 33 years, their estimated monthly contribution in the scheme should be Rs 5,009. The contribution will help one get a retirement corpus of Rs 1,00,01,450.69.
What to do to get Rs 2 crore retirement corpus
To get a retirement corpus of RS 2 crore, the estimated monthly contribution in EPF should be Rs 10,018. With that contribution, one's estimated retirement corpus will be Rs 2,00,02,901.38.
What to do to get Rs 3 crore retirement corpus
If you contribute Rs 12,500 a month in your EPF, you can achieve the goal of a Rs 3 crore corpus in a little over 35 years. So, you have to start investing from the age of 24 till a little over 59 years of age.