What happens to EPF accounts after retirement?

After retirement, EPF (Employees' Provident Fund) accounts can indeed remain open, allowing the balance to continue earning interest. This is a significant feature of EPF accounts, as it provides a safety net for retirees who may not need to withdraw all their savings immediately. The EPF interest is typically credited to the account each year, helping to preserve and potentially grow the retirement corpus even after the account holder has stopped contributing to it.

Maintaining an open EPF account post-retirement offers flexibility in financial planning. Individuals can choose to withdraw funds as needed while allowing any remaining balance to benefit from compounded interest. This approach supports retirees in managing their finances over the long term, rather than receiving a lump-sum payment that could be easily depleted.

The other options present scenarios that are not accurate regarding the management of EPF accounts after retirement. For instance, while withdrawals can have tax implications, not all of them are subject to income tax, especially if certain conditions are met. Closing accounts automatically or transferring them to a pension fund doesn't reflect the EPF's structure, which emphasizes the ability to maintain earnings in the existing account.