Plan your retirement with National Pension Scheme.
NPS offers extra โน50,000 tax deduction u/s 80CCD(1B) over and above 80C. At 60, you can withdraw 60% lumpsum tax-free; remaining 40% buys annuity for monthly pension.
Section 80C: โน1.5L deduction. Additional โน50,000 under Section 80CCD(1B) โ exclusive to NPS. Plus employer contribution up to 10% of basic deductible under 80CCD(2).
Premature exit allowed after 5 years, but you can withdraw only 20% as lumpsum. 80% must be used to buy an annuity.
Choose lifetime annuity with return of purchase price (ROP). Provides monthly pension AND returns the corpus to your nominee on death.
Depends on corpus and annuity rate (typically 5-7% p.a.). โน50L corpus โ ~โน25-30K monthly pension.
NPS has higher return potential (equity exposure) and extra โน50K tax benefit. PPF is safer with guaranteed returns. Most should use both.