Your EPF savings can be the largest disbursement amount that you will see in your lifetime. It’s something that most individuals anticipate throughout their working life. It can give them a sense of fulfillment as it’s possible for them to achieve their life goals.
Upon reaching 55 years old, most of the people prefer to withdraw all their EPF savings but many are opting for flexible withdrawals either in partial or monthly payments. There are several factors for you to consider in choosing between withdrawing a lump sum and making a partial withdrawal.
Decision: Lump-sum vs Partial Withdrawal?
Based on the EPF retirement plan, money accumulated in an EPF savings account II can only be withdrawn when members reach 50 years old, and they may allow to withdraw only 30% of their EPF, members who are 55 years old or older may withdraw all of their EPF.
EPF Account II Withdrawal at Age 50 Years
EPF allows you to make one shot withdrawal at the age of 50 years. In the other words, you are allowed to withdraw all your savings in Account II in order to help you prepare for your earlier retirement.
There is no restriction on how your money going to use. But, it is advisable that you use the money wisely and do not spend the money away, else you may not be able to achieve the kind of retirement life that you wished for.
Applications to withdraw can be submitted 6 months before reaching age 50 years. And, payment will only be processed after you reached 50.
Eligibility for Withdrawal:
You can withdraw your savings in EPF account II to finance the purchase of a house. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house or the balance available in Account II, whichever is lower.
If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house or the balance available in Account II, whichever is lower.