Recently, EPFO also decided to credit the units of equity ETF (Exchange Traded Funds) directly to investors’ accounts.  Until then, the benefits of equity investments didn’t reflect in the interest rate calculation or in the subscriber’s account. As you know, the EPFO passively invests upto 15% of the in equity markets through the ETF route.

In 2018, India’s largest retirement money manager aims to go entirely digital and use Aadhaar to raise the quality of its service standards.

What the  EPFO’s agenda is for 2018?

It wants to offer the option to link the EPF account and Aadhaar along with the generation of Universal Account Number (UAN) through mobiles. Once the Aadhaar seedling is in place, the accountholder’s experience will change with the Aadhaar Enabled Payment System (AEPS). The elimination of human interaction in the process of service delivery will not only save costs and expedite service delivery; it will negate opportunities for any corruption associated with the claim settlements. 

Speaking about these developments, the Central Provident Fund Commissioner Mr V P Joy said, “The EPFO will be a paperless organisation by August 15, 2018, with complete digitisation of its operations. Moreover, our focus would be on providing all services to our members and pensioners through smart mobile phones anywhere, anytime."

 "Apart from this, we would shortly provide a service to members to generate Universal Account Number (UAN) using mobile phones. At present, this service is available online”, he further added.

Besides improving the quality of its services, the EPFO endeavours to up its game significantly on the equity investments. From the time it began investing in equity markets passively in August 2017, it has deployed approximately Rs 32,000 crore and earned a moderate return of close to 21%.

Nonetheless, you shouldn’t entirely depend on EPF to build an adequate retirement kitty. The right mix of assets and a disciplined investment approach will help you take care of your post-retirement expenses.

Unbiased financial knowledge is the key to succeed in achieving all your investment goals before and after retirement.

The Retirement Letter, a PersonalFN initiative, offers its subscribers valuable guidance on managing money for their retirement.

If you have a few years to go before retirement, we strongly suggest you sign up for the very popular service - The Retirement Letter. With every monthly issue of The Retirement Letter, we will walk you through the complete journey that can lead you to a self-sufficient and comfortable retirement. In fact, we will you handhold through every step that is crucial to plan your dream retirement. And there’s much more…subscribe to this service right away and take your first step towards a dream retirement!

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• Quantification of your retirement goal
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For more information on the Retirement Planning Service from PersonalFN, contact us at (022) 61361200 or write to us at info@personalfn.com. Taking the advice from our team of financial planners, who work as Financial Guardians may enhance your chance of enjoying your golden years of life with peace of mind.

You can also access PersonalFN’s EPF  calculator here.

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