Savings and proper investments are needed beforehand so that you do not have to face financial difficulties after retirement.
New Delhi: Savings and proper investments are needed beforehand so as not to face financial difficulties after retirement. It seems that there are many schemes in the market that claim good returns. However, not all of these plans can be trusted. Therefore, it is important to consider which plan will make the investment safer and more profitable. Most people believe in government schemes. PPF and NPS are good options for you if you also believe in government schemes . Both these schemes offer good returns (PPF and NPS Know which scheme is more beneficiary to invest for post retirement days).
Benefits of PPF
A Public Provident Fund (PPF) account is a great option for saving large sums of money from very small savings. It is exempt under income tax section 80C up to a limit of Rs 1.5 lakh. It is an investment plan that offers a safe and guaranteed return. There is also a facility to take a loan using a PPF account. You can borrow up to 25% on the amount deposited. To avail this facility, the principal amount of the loan has to be repaid first.
Benefits of NPS
NPS stands for National Pension System. The scheme is run on behalf of PFRDA. It has equity exposure. If you invest here, you will get a lump sum payment at the age of 60. The person concerned should be between 18 and 65 years of age to invest in it. There are two options for investing in NPS. One tier-1 and the other tier-2. An account can be started from Rs. 1,000 in this scheme.
Which plan is more profitable?
An investment in NPS yields an annual return of up to 10 per cent. PPF, on the other hand, offers a return of 7.1 per cent. Considering this, NPS is more beneficial. This is because it generates 2.9 per cent more profit than PPF.
