Amit Sethi
PPF is a government-backed savings plan with a 15-year lock-in; at maturity, the subscriber can withdraw the accumulated funds tax-free.
NPS is a government-administered savings plan. One can withdraw 60% of the fund at retirement; the rest is reinvested in an annuity plan.
SCSS is a government-backed savings plan with a 5-year lock-in; it offers higher rates than other small savings schemes with tax benefits.
Debt mutual funds can be alternative options for pension funds; they offer investment safety as they invest in government securities.
Mutual funds offer various equity-oriented, debt-based, and mixed-equity funds to help build a retirement corpus.
Annuity or pension plans offer investors a steady monthly income post-retirement.
Annuity plans come in two main variants: immediate and deferred. Immediate plans start pension payments after the first premium; in deferred plans, payments are made after a set period.
You can choose a plan based on your needs and risk-bearing capacity.
Compiled By Himani Verma