In order to remain financially prepared and well-informed, tracking your Employee Provident Fund (EPF) balance can prove to be extremely beneficial. Introduced in 1952, the EPF is a retirement benefits scheme available to salaried employees in India. The purpose of this article is to emphasize the enormous importance of regular EPF balance checks.
Primarily, the EPF is initiated by organizations with more than 20 workers employed. According to the scheme, employees contribute 12% of their basic salary and dearness allowance towards the EPF. The same amount is supplemented by the employer as well. This total amount is then deposited in an EPF account and invested to generate returns, which are tax-free.
To gain a better understanding of your financial status, doing an EPF balance check forms an essential part of financial planning. An EPF balance check ensures a clear picture of your savings—is your money in safe hands? Are you saving enough to secure your future? An EPF balance check confirms answers to these pertinent questions.
One of the primary reasons to conduct regular EPF balance checks is to ensure that the company is regularly depositing their part of the contribution. It helps in identifying if there are any discrepancies in the fund deposition from the employer’s side. If the company is failing to make regular deposits, it may put your savings plan in jeopardy.
A regular EPF balance check also helps in planning financial goals. Retirement planning is becoming essential and starting early is advised by most financial consultants. The balance in your EPF account forms a significant part of your retirement corpus. Maintaining regular checks will help you assess if your contributions are sufficient to meet your retirement goals.
Furthermore, the EPF balance also includes the calculation of the interest earned on the deposits. The interest is calculated every year and the rates are notified by the Government. As of 2020, the current rate of interest on EPF is 8.5%. A regular EPF balance check can help you monitor the interest accrued and ensure that there are no calculation errors.
In case of job change, it is essential to ensure the transfer of your EPF account to the new employer. This is another instance where an EPF balance check comes handy as it assists in confirming whether or not your past contributions have been correctly transferred.
There are several ways to perform an EPF balance check— through an SMS, missed call, the UAN portal, or the UMANG app. All of them are simple and convenient.
Conclusion
Undertaking regular EPF balance checks, including using the EPFO login, ensures that you stay financially informed and prepared. It allows you to ensure that your savings are on track, that you are preparing adequately for your retirement, and that you are getting the most out of your EPF account.
Disclaimer
This article is intended for informational purposes only. Before making any decisions related to your finances or investments, it is important to do your own analysis or consult a financial advisor to ensure that it is suitable for your individual circumstances.
In short, an EPF balance check forms a vital part of financial management. It ensures that your employers are consistent with their contributions, aids in retirement planning, allows you to verify the calculation of interest earned, and reassures that your EPF account is transferred correctly during a job change. Various modes are available for EPF balance checks, making it easy and convenient. However, always remember to consult with a financial advisor before making any investment decisions. Always weigh up the pros and cons to make an informed and reasonable decision.