Our country Even today, very few people plan retired while doing jobs. However, this is not absolutely correct. Retirement planning is very important in today’s time. Today we are telling you three investment products for retirement planning, National Pension System (NPS), Mutual Fund Style Equivalence Scheme (SWP) and Public Provident Fund (PPF). Let us know which of these three is the best product for retirement planning.
National pension system (nPS)
NPS is a government -backed scheme for a long period, designed to provide a stable income after retirement. This is ideal for those who want a low risk option with tax exemption.
Who should choose NPS?
- If you prefer a low -risk, disciplined approach to retirement, you can choose NPS.
- If you have stability and guaranteed income through annuity, then you can choose NPS.
- If the tax-saving is important for you during the accumulation phase, you can choose NPS.
Mutual Fund Swps
Mutual funds systematic withdrawal plans (SWPS) provide flexibility, allowing you to control how and when you remove the funds. This makes them ideal for those who want more control over their investment. You can decide the amount of withdrawal and frequency, monthly, quarterly or according to your needs.
Who should choose SWP?
- If you want complete control over your withdrawal and investment, you can choose by SWP.
- If you want flexibility and liquidity in your retirement plan, then you can choose by SWP.
- If tax efficiency and diverse options are necessary for your strategy, you can choose by SWP.
Public Provident Fund (PPF)
Public Provident Fund is a government -backed savings scheme that provides tax profit and attractive returns on investment. The scheme provides tax benefits under Section 80C of the Income Tax Act. The scheme requires a minimum of Rs 500 and a maximum annual deposit of Rs 1.5 lakh. The minimum duration of public provident fund is 15 years, which can be extended to 5 years blocks. PPF account can open any Indian citizen, including minors. With a 15-year lock-in period, it is a suitable option for those who want to invest for long periods.
Who should choose PPF?
- If you do not want to take a risk on investment at all, then you can choose by PPF.
- If you want a fixed return and tax exemption on investment, then you can choose by doing PPF.
- If you need money in an emergency and you do not have an emergency fund, then PPF may be the best in that situation.
Which is better for retirement?
NPS, SWP or PPF provide three different benefits, but choosing the right option depends on your goals. Choose NPS if you want a low cost, structured retirement plan with guaranteed income in tax profit and retirement. Choose SWP if you want flexibility, liquidity and the ability to actively manage your withdrawal and investment. Choose PPF if you do not want a risk on investment at all and want fix returns. After 15 years, you can prepare a big corpus by extending PPM for 5-5 years.
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(Tagstotranslate) NPS vs Mutual Fund Swps vs PPF (T) NPS vs Mutual Fund SWP vs PPF (T) Retirement Planning (T) Investment (T) Investment (T) Financial Planning
