Should I invest in both NPS and PPF?

Each has its own advantages and can be supplemented to achieve long-term goals, primarily being retirement. Rather than trying to figure out which is better between PPF and NPS, make the best use of both PPF and NPS in accumulating a sizable corpus over the long term.

Which is better NPS or PPF?

PPF provides secured returns over the long term and for all ages, which is why it is a great investment opportunity for long-term savings. Of late though, the National Pension Scheme or NPS has also been gaining a lot of attention as a tool for making retirement savings.

Is NPS necessary for government employees?

NPS is a market linked, defined contribution product. NPS is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01. 2004. Subsequently, all State Governments excluding West Bengal have also adopted NPS for their employees.

Is it mandatory to invest in NPS?

Benefits of Investing in NPS It is a voluntary scheme and open for all India citizens falling between the age group of 18 to 60 years. The scheme comes with a lot of flexibilities which allow you to choose your investment options. You can also switch between different investments funds.

Is govt contribution in NPS taxable?

A resounding yes! If your employer is contributing to your NPS account you can claim deduction under section 80CCD(2). On contributions made by you, you can claim deduction under section 80C or 80CCD(1B).

Is NPS compulsory for government employees Quora?

The National Pension Scheme(NPS) is a social security initiative of the Central Government. It is compulsory for government employees to invest in NPS as government had withdrawn the Old Pension Scheme in 2004, thereby shifting the onus of retirement planning from employer to employee. For rest, NPS is optional.

Is NPS compulsory for central government employees?

Yes, NPS is compulsory for central government, other government employees, PSBs etc. As regards selection of scheme between PPF & NPS PPF is for specific period of 15 years. Deduction of tax under section 80 C of Income Tax Act is available. Moreover, there is a facility of withdrawal during the currency of deposit.

What is National Pension Scheme (NPS)?

The National Pension Scheme (NPS) is a social security initiative of the Central Government. It is compulsory for government employees to invest in NPS as government had withdrawn the Old Pension Scheme in 2004, thereby shifting the onus of retirement planning from employer to employee. For rest, NPS is optional.

What is the difference between NPs and PPF?

NPS allows subscribers equity exposure of up to 75\% till 35 years of age. After that, \% contribution in equity will decrease by 2.5\% every year. PPF like NPS is an EEE (Exempt-Exempt-Exempt) instrument where entire corpus (Principal + Interest) escapes tax at maturity.

Can I have a different pension fund manager under NPS?

Yes, there is a default PFM provision under NPS and SBI Pension Funds Private Limited acts as the default Pension Fund Manager. Can I have a different Pension Fund Manager and Investment Option for my Tier I and Tier II account? Yes. You may select different PFMs and Investment Options for your NPS Tier I and Tier II accounts.