Has EPFO ruined your retirement?
Has the retirement body’s historical aversion to stocks prevented you from building a big corpus?
The Employees’ Provident Fund Organisation (EPFO) has started investing in stocks. We crunched some numbers to calculate how much the EPFO’s aversion to equity may have hurt you. We looked at interest rates offered on the PF in the past 20 years and calculated the corpus of a hypothetical subscriber who joined the scheme in June 1995. The calculation factored in a 10% increase every year in line with the annual hike in income.
If our hypothetical subscriber started by putting Rs 2,000 a month (including employer’s contribution) in the EPF from June 1995, his PF balance would have grown to Rs 29.35 lakh by June 2015.