Special Situations Where EPF Savings HelpSpecial Situations Where EPF Savings Help
The Employee provident fund (EPF) is a vital retirement planning tool. The tax-free compounded interest provides healthy growth of your savings. If the savings are made for an extended period, EPF can provide a reliable option for meeting your retirement plans. As one is planning for retirement, some circumstances might require instant cash. When you have explored all possibilities of getting money, and nothing is forthcoming, EPF funds can be quite helpful. That said, here are some special situations where EPF funds become handy.
Meeting financial responsibilities
As a human being, they are some financial responsibilities that come along.
Things like marriage and education might need a considerable amount of cash. At this point, EPF can be a good source for additional money. EPF allows you to withdraw up to 50% of your contribution. However, one should meet certain set requirement defined by the EPF management.
Property related expenditure
The EPF management allows one to withdraw or make payments for construction, repair, or housing loan repayment. However, one is expected to meet certain conditions before getting the amount. For instance, employees with ten years of services are allowed to use 36 months wages to repay a house loan. Those planning for repairs can only get a maximum of 12-months wages. The good thing with EPF is that you can use it for a house with the name of a spouse or in joint ownership.
Medical emergency
EPF funds treat medical emergency claims different from other applications. Medical cases like TB, …