A superannuation withdrawal policy outlines the terms and conditions under which an employee can withdraw funds from their superannuation account. Superannuation is a retirement benefit given by the employer to an employee. It is a part of the salary structure (not an additional benefit) and is 100% tax-free at the time of maturity, as per the Income Tax Act.
As per the Superannuation Act in India, you can withdraw up to one-third of your superannuation fund as a lump sum at the time of retirement, and the balance is paid as an annuity, which is a regular pension post-retirement.
If you are retiring at the age of 60, here’s what you can do:
1. 💳 Withdraw one-third of the total superannuation fund as a tax-free lump sum. This amount can be used according to your financial needs or plans.
2. 💳 The remaining two-thirds of the fund should be used to purchase an annuity from an insurance company of your choice. This annuity will provide you with a regular pension for the rest of your life.
Remember to carefully read the terms and conditions of your superannuation withdrawal policy. If you need further assistance, consider consulting with a financial advisor or your company's HR department. They can provide you with personalized advice based on your financial situation and retirement plans.