PPF, VPF, NPS, ULIP, equity mutual funds — What should one choose for retirement? Most salaried individuals stick to EPF. And why not? A risk free, tax free instrument, which is also easy to invest into as the contribution gets automatically deducted from the salary with a matching contribution by the employer.
The recent Supreme Court ruling to add non-variable allowances like special allowance to the basic to calculate EPF contribution is a big positive for employees as they would have more at retirement. However, just EPF may not be enough to meet the expenses post retirement. Which is why private sector employers are also offering NPS on a voluntary basis. Some corporates are also contemplating using NPS for their superannuation fund.