When planning for retirement, three government-backed options dominate the Indian investment landscape: PPF, EPF, and NPS. Each has unique features that make them suitable for different needs.
PPF (Public Provident Fund)
Current rate: 7.1% (Q1 FY 2025-26)
Tenure: 15 years (extendable in 5-year blocks)
Limit: ₹500 to ₹1.5 lakh per year
Tax status: EEE (Exempt-Exempt-Exempt)
Risk: Sovereign guarantee, zero risk
Use our PPF Calculator to project your PPF maturity amount.
EPF (Employee Provident Fund)
Current rate: 8.25% (FY 2025-26)
Contribution: 12% of basic (employee) + 12% (employer)
Limit: No upper limit on contribution
Tax status: EEE (for continuous service of 5+ years)
Access: Can withdraw on job change or after 2 months of unemployment
Use our EPF Calculator to estimate your retirement corpus.
NPS (National Pension System)
Returns: Market-linked (equity up to 75%, debt, government securities)
Contribution: Minimum ₹1,000 per year
Tax status: EET (80C up to ₹1.5L + additional ₹50,000 under 80CCD(1B))
Maturity: 60 years (with 40% annuitization)
Partial withdrawal: Up to 25% for specific purposes after 3 years
Comparison Table
Recommendation
EPF first: If you're salaried, max out EPF contributions
PPF for extra debt: Use PPF for additional tax-free debt allocation
NPS for equity: Use NPS for equity exposure with tax benefits
Plan your retirement holistically using our Retirement Calculator. Also check our FD Calculator for short-term investment options.
Tags
Written by
CalcBit Editorial Team