Home / Money / Personal Finance /  Employees can’t hold multiple UANs

I am 43 years old. My monthly expenses are around 1 lakh. I have 3.75 crore investments—Public Provident Fund and Employees’ Provident Fund ( 53 lakh), real estate ( 1.6 crore), equity mutual funds ( 1.10 crore) and stocks ( 50 lakh). I want to retire from my current employment. I’ll start something of my own without touching the above corpus. Will I be able to sustain till 85 or 90 years of my age?

—Atharv G.

If we consider inflation at the rate of 7% and the average growth rate of assets at 10%, you should be able to generate a monthly income of 1 lakh per month for the rest of your life. However, you need to be aware of a few points. Firstly, you will have to withdraw the PF corpus after leaving your employment; else the interest earned post retirement will be taxable. Second, the corpus you are holding in real estate is considered an investment and not as self-occupied; even if it grows in value, it needs to generate income as well as growth of capital. The direct stocks portfolio needs more proactive management; hold it only if you are able to manage the same. Assess the allocation you have in stocks and the return it generates and ensure that the overall portfolio is able to generate an average return of 10%.

You should know that you will be able to meet your targeted numbers at a growth rate of 9%. But it is always good to target an incremental rate of 2-3% over and above the inflation rate.

The PF amount deducted from my salary is maintained by the company’s own PF trust. This is my first job and I don’t have a Universal Account Number (UAN). Will there be any issue when I move to another organization? Is there any way to link my PF amount to a newly-created UAN number?

—Ashish R.

Every employee is allotted a 12-digit UAN, which is a unique number. An employee cannot hold more than one UAN and it is irrespective of how many employers she may have worked with. The employee’s PF number gets linked to UAN and it helps in seamless management of PF-related issues, including transfers, withdrawal as well as checking balances. Get in touch with your employer to get the UAN allotted.

Surya Bhatia is managing partner of Asset Managers

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