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Retirement Planning: The sooner you start planning for retirement, the better. Today, people have many options. Some invest in NPS, while others deposit money in PPF. Salaried employees have EPF. Meanwhile, for low-income individuals, there are schemes like Atal Pension Yojana (APY) and Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM).

This raises the question: which scheme is the best? There is no single answer to this; it depends on your employment, income, age, and retirement goals.

Let us understand them one by one.

**Scheme | For Whom | Biggest Benefit**

**NPS** | All Indian citizens | Large retirement fund and tax exemption

**EPF** | Salaried employees | Contributions from both the employee and the company

**PPF** | All Indian citizens | Completely tax-free returns

**APY** | Low-income individuals | Guaranteed pension of ₹1,000 to ₹5,000

**PM-SYM** | Unorganized sector workers | Guaranteed monthly pension of ₹3,000; government makes an equal contribution

**UPS** | Eligible Central Government employees | Fixed pension based on specific conditions

**NPS: An opportunity to build a large fund over the long term**

If you are between 20 and 45 years old and can invest for the long term, the National Pension System (NPS) is considered a good option. Your money is invested in the stock market and bonds, offering the potential for good returns over the long run. However, the returns are not guaranteed.

Suppose you are 30 years old and invest ₹5,000 per month. If you earn an average annual return of 10% and continue investing until the age of 60, your total investment would be ₹18 lakh. Meanwhile, the estimated corpus could grow to approximately ₹1.13 crore.

At the time of retirement, about ₹68 lakh (60%) can be withdrawn tax-free. An annuity must be purchased with the remaining ~₹45 lakh; this annuity will provide a monthly pension. EPF: Robust savings for the employed

If you are a salaried employee, EPF forms the strongest foundation for your retirement planning. Both the employee and the employer contribute to it monthly, and the government pays interest annually.

Suppose your basic salary is ₹40,000; in this case, the combined monthly contribution from the employee and the employer to the EPF account could be around ₹9,600. Regular contributions over 30 years can result in a substantial retirement corpus.

PPF: For those who prefer zero risk

If you wish to avoid risk, the Public Provident Fund (PPF) is an excellent option. The government pays interest on this scheme, and both the interest earned and the maturity proceeds are tax-free.

If you invest ₹1.5 lakh annually at an interest rate of 7.1%, you could accumulate a corpus of approximately ₹40 lakh after 15 years. The account can also be extended beyond this tenure if needed.

APY: A better choice for low-income earners

If you have a low income and desire a guaranteed pension, the Atal Pension Yojana (APY) is a suitable option. It offers a monthly pension ranging from ₹1,000 to ₹5,000 upon reaching the age of 60. The earlier you join the scheme, the lower your contribution amount will be.

For instance, if you are 25 years old and want a monthly pension of ₹5,000, you would need to contribute approximately ₹376 per month. You will start receiving the fixed pension after turning 60.

PM-SYM: For street vendors and manual laborers

If you work in the unorganized sector—such as a street vendor, manual laborer, or small shopkeeper—the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) is a great option. This scheme provides a guaranteed monthly pension of ₹3,000 after the age of 60. Its most notable feature is that the government contributes an amount equal to your own contribution. For instance, if you are 30 years old, you would need to deposit ₹100 per month. The government will also contribute ₹100, meaning a total of ₹200 will be deposited into the account monthly. Upon reaching the age of 60, you will receive a monthly pension of ₹3,000. In the event of the pensioner's death, their spouse receives a family pension amounting to 50% of the pension.

UPS: A New Option for Government Employees

If you are an eligible Central Government employee, the Unified Pension Scheme (UPS) could also be a good option.

Under this scheme, upon meeting specific conditions, one can receive a pension of up to 50% of the average basic salary drawn during the final 12 months of service. This ensures a steady income after retirement.

Which Scheme is Ultimately the Best?

If you work in the private sector, a combination of EPF and NPS is considered the most robust approach. EPF offers secure savings, while NPS can help build a substantial corpus over the long term.

If you run your own business, NPS and PPF can be excellent choices; they offer the potential for better growth alongside secure, tax-free savings.

If you have a low income or work in the unorganized sector, schemes like APY and Pradhan Mantri Shram Yogi Maan-dhan...

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