NPS has been superior to EPF. Is it time to switch?

We recently wrote a piece on why the National Pension Scheme (NPS) should be the number one choice for retirement planning, as it can build a far more substantial corpus than the Employees' Provident Fund (EPF). To recap, assuming a monthly Rs 10,000 investment since May 2009, an EPF would have helped you stack Rs 35.1 lakh. In contrast, an average NPS would have amassed between Rs 40.3 lakh (if you opted for a 25 per cent equity allocation) and Rs 51.2 lakh (75 per cent equity allocation). In other words, the NPS would have helped you build around 15 to 46 per cent more money for retirement. Now, that's a significant difference. We even compared it directly with the PPF (Public Provident Fund) in the same story, and here's what we found. More than a wealth builder The goodness of NPS doesn't stop here.

This article was originally published on May 21, 2024.