By Admin 
Retirement saveings scheme: If the life after retirement needs comfortable and secure, then financial planning will also have to be done accordingly. There are three extremely popular options of retirement savings scheme in our country- Public Provident Fund (PPF), Employees Provident Fund (EPF), and National Pension System (NPS). The features of each of these schemes are unique. If you too are finding it difficult to choose one of these, then we make your work easier. Let us tell you through this news how these three are different from each other so that you do not have trouble in choosing the right plan according to you.
Public Provident Fund (PPF)
PPF is a government scheme that allows savings in long term. In this, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. It has been designed keeping in mind those who are looking for a risk free investment option with tax benefit.
Its specialty
The maturity period in PPF is 15 years. It can be extended in a 5-5 year block.
The government gives interest at the rate of 7.1 percent annually on the PPF account. The interest rate on PPF is determined by the government every quarter.
This risk is free due to being supported by the Government of India.
There is a tax exemption on investment up to Rs 1.5 lakh annually under Section 80C on PPF.
There is no tax on interest in interest.
Loss
The PPF comes with a lock in period of 15-sight. After the completion of 15-year lock-in period, you can close the account and withdraw all the money from the PPF account.
Return on this does not move much further than inflation.
Employee Provident Fund (EPF)
EPF is a compulsory savings scheme for employees working in a company in number 20 or more. Its purpose is to provide financial security to salaried employees after retirement.
Its specialty
In the EPF, 12 percent contribution of basic salary and dearness allowance is done by both the company and the employee.
The interest rate on the Employees Provident Fund for the current financial year is 8.25 percent.
The risk on this is low and returns are guaranteed.
On investing in EPF, there is a tax exemption of up to Rs 1.5 lakh under Section 80C.
The contribution of Rs 2.5 lakh every year in PF account is free.
The fund after retirement is completely tax free.
The interest rate is higher than PPF.
Savings also increase according to the contribution of the employer.
If needed, you can also do partial withdrawal of deposited amount.
Loss
Contribution of more than Rs 2.5 lakh is taxed.
It is limited to salaried persons only.
National pension system (nPS)
NPS is a retirement savings scheme launched by the Government of India. In this, you can choose the option of investment in equity, corporate date, government bonds according to your choice. Return on this is not fixed because it is connected to the market.
Specialty
There is no upper limit of contribution in it.
It usually gets a return of 8-10 percent.
Due to the market linked scheme, the returns may be found on the basis of the performance of the fund manager, but in this you can choose the investment option according to the ability to take your risk. You can change the investment according to time.
Under section 80C, tax exemption on investment up to Rs 1.5 lakh is available. Under Section 80CCD (1B), subscribers can avail an additional Rs 50,000 deduction.
60 percent tax-free of NPS corpus can be extracted, while the remaining 40 percent is used to buy annuity.
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