The Employee Provident Fund (EPF) and National Pension Scheme (NPS) are crucial retirement savings tools designed to help employees build a tax-efficient retirement corpus. While both schemes share the objective of creating a retirement fund, they differ significantly regarding flexibility, risk, returns, and tax implications. Employees can secure a substantial retirement corpus by strategically planning with either EPF, NPS or a combination of both. The choice between NPS, EPF, or a blend of both depends mainly on two factors—age and salary.
This article aims to guide employees in making an informed decision based on these factors by providing a comprehensive comparison of the schemes, including:
‣ Partial Withdrawal
‣ Maturity and Pre-Maturity Exit
‣ Pension
‣ Risk and Returns
‣ Tax on Contribution
‣ Tax on Accretion
‣ Tax on Withdrawal
