A monthly Rs 10,000 investment since May 2009 in EPF would help you build Rs 35.1 lakh. In contrast, an average NPS would help you stack up 15 to 46% more!
An average NPS would have amassed between Rs 40.3 lakh (25% equity allocation) and Rs 51.2 lakh (75% equity allocation). Hence, it has been better than EPF.
An NPS subscription can get you an additional deduction of Rs 50,000 in your taxable income. This is over and above the Rs 1.5 lakh deduction you already enjoy with EPF.
Unlike with EPF, you can invest as much as 75 per cent of your money in equity, which is good because this asset class can deliver higher returns in the long run.
You can continue your NPS account with a minimum contribution of Rs 1,000 in a financial year, whereas your EPF contribution has to be 12% of your basic salary.
Yes, you should. However, switching from EPF to NPS is not easy. Read the full article to learn what options you have on the table for building a larger retirement kitty.