We all want that when the working age ends, there should be no tension about money in old age. For this peaceful retirement, there are three most trusted and popular schemes in India – NPS, PPF and EPF,

These three are three different ways to grow your money. Some paths are straight and safe, while others may be a little winding but more beneficial. Let us consider these three as our three friends and see which friend is best for you.

1. EPF (Employees Provident Fund) – Your friend who comes with the job

• what’s that for? This scheme is only for salaried employees. This is your “forced good habit” in a way.
• How does it work? Every month a little money is deducted from your salary and the same amount is deposited in your account by your company. Meaning, your money grows at double speed.
• What is special? In this you 8.25% Fixed interest is available. Meaning, there is no tension, the money is safe and you will also get assured returns. This accumulates a huge amount till your retirement.

To put it in one line: This is a strong foundation for your retirement planning, which your company creates for you.

2. PPF (Public Provident Fund) – Your safest and most trusted friend

• what’s that for? this scheme for everyone It is – whether you work, do business or anything else. Any Indian can invest money in this.
• How does it work? In this you have to invest money for 15 years. It’s like a long-term friendship.
• What is special? returns received in completely tax-free And the interest is also decided by the government, so there is no risk. This is best for those who say, “Brother, I don’t want any risk, just want my money to be safe.”

To put it in one line: It is like your safe, which is safe and also has the trust of the government.

3. NPS (National Pension System) – Your modern friend who takes a little risk

• what’s that for? This is also a voluntary scheme and anyone can start it.
• How does it work? This scheme will save your money a little stock market And a little in safe havens like government bonds.
• What is special? Because its money is invested in the stock market, hence it Highest returns (9% to 12%) There is hope to meet. But there is some risk in this too – if the market falls, you may lose money too. We can think of it as a game of “high risk, high return”. There are also additional benefits of saving tax in this.

To put it in one line: It’s like a smart player who tries to get you the most profit by taking a little risk.

So the final verdict: what’s right for you?

It completely depends on you, what kind of person you are.

• If you like security: If you say I don’t want to take any risks, just keep my money growing slowly, then for you EPF and PPF Are best friends. These will give you peaceful sleep.
• If you want higher returns: But if you are willing to take a little risk and want to have a huge corpus for old age, then NPS Made for you.

Best advice: Experts say that do not keep all your capital in one place. It is wise that you invest a little money in all threeJust like there are pulses, rice, roti and vegetables in the dinner plate, similarly your retirement portfolio should also have a balance of both security (PPF/EPF) and growth (NPS),

In this way, you can make a retirement plan for yourself which is both strong and beneficial.