A lot of people make investment plans to stay comfortable after retirement, but out of that, very few people are able to invest their funds in the right place and tell you that the more necessary the investment, the more important it is to choose the right investment scheme. If you invest in right place then you can get more profit from it. If you are thinking of investing in NPS, then for a long time you can get good returns from it, but at the same time through EPF you can also get good and safe returns from NPS.
National Pension System: (NPS)
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How different is NPS and EPF investment:
National Pension System: (NPS)
NPS which is considered the best option for retirement planning investment.
The money you invest in NPS is invested in equities, corporate debt and government bonds.
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You can choose these three options according to you, NPS can give you good returns in the long run, due to which your money is invested in equity.
Although your returns in NPS cannot be fixed, your returns will depend on the ups and downs of the market.
You have to invest some amount every month in NPS, you also get tax benefits on this amount.
Employee Provident Scheme: (EPFO)
EPFO is a scheme launched to secure the retirement life of people working in the organized sector.
EPFO is fully controlled by the Indian government scare.
Every month some part of the salary of the people working in the organized sector is put on this EPF account,
The government is paying annual interest on this amount deposited in EPF.
How different is NPS and EPF investment:
Investment Essentials:
EPF investment is mandatory for an employee with less than 15 thousand salary in EPF, however other people can also invest through VPF option.
At the same time any person can invest in NPS and is completely optional.
Contribution:
In EPF, 12 12 per cent of your company and your basic salary is deposited in EPF account. In EPF, the account holder does not have to do anything different on his behalf.
Any person can open an NPS account and choose their investment amount and can deposit that amount in the NPS account annually, however it is mandatory to invest at least 500 in NPS Tier 1 and 1 thousand in Tier 2 account annually.
Divergence:
In EPF, full amount can be withdrawn from EPF once the EPF account holder is 58 years old.
But after 60 years of the account holder in NPS, after 60 years, there is an option to withdraw 60% of the total amount, at the same time the annuity plan has to be purchased from the remaining 40% of the amount in which the pension is received after 60 years.
Withdrawal before Machurity:
Before the time of maturity in EPF, you can withdraw the amount of the employer, in which you can give due to illness, housework, education of children, even after leaving the job, you can withdraw the entire amount of EPF.
At the same time, only after 10 years of your investment in NPS, you can withdraw up to 25 percent of your fund.
tax benefit :
The interest received on your investment in EPF is completely tax free, at the same time no tax has to be paid on withdrawal of up to 1 lakh 50 thousand from the account.
In NPS also, you get tax benefit up to 1 lakh 50 thousand under section 80C, apart from this, you also get tax benefit of up to 50 thousand under section 80 CCD 1 (B).
Where should you invest?
Before investing in these two, you should take into consideration your investment needs and risk.
If your annual income is 50 more and you are planning for retirement, then NPS will be a good option because you will get more tax benefits in it.
At the same time if you want to get good returns at low risk, then EPF is the best option in which your money is used as a government bond and guarantees you a fixed return. .
