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EPFO Simplifies Rules for Partial Withdrawals, Retains 25% Minimum Balance
The Employees Provident Fund Organisation has relaxed rules for partial withdrawals, allowing members to address urgent financial needs while retaining a crucial 25% minimum balance for retirement savings.
- The Employees Provident Fund Organisation announced on Monday that it will ease rules for partial withdrawals, benefiting over seven crore subscribers seeking immediate financial assistance.
- Members must retain at least 25% of their corpus as a minimum balance to ensure they can build a significant retirement fund and benefit from compounding returns.
- This move aims to support individuals financial needs without jeopardizing their pension entitlements, aligning with global practices observed in the Employees Provident Fund (Malaysia) and other retirement schemes.
Por Qué Es Relevante
This policy shift is significant as it balances immediate financial needs with long-term retirement planning, reflecting a growing trend among pension systems worldwide to adapt to members needs while ensuring financial security.