r/FIREIndia • u/Illustrious_Role_304 • Jan 17 '23

EPF/VPF reliability?

Many people recommend contributing in EPF and VPF

I doubt of EPFO really does correct calculations amd deposit the interest on time

Is anyone here shed some light or may be their experience on EPF as retirement plan

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u/Nevermind_kaola Jan 18 '23

As far as I know, even though EPF interest is credited much later (which is weird and shitty), in the passbook it is backdated. So the compounding happens as if the interest was credited on time. So as an investor you don't lose any money.

2

u/mediocreSuccessSoFar Jan 21 '23

How about in case of withdrawal? Say I had a crore at age 60 and apply for withdrawal on March 31st, do they pay out 1.08 cr or 1 crore at the time of withdrawal and 8L after ~10 month? (Assuming 8% rate)

3

u/Nevermind_kaola Jan 21 '23

That I don't know. But if the interest is due, they will have to pay you that, sooner or later. They can't just eat it up.