Retirement Planning: EPF.. PPF.. VPF.. which one is the best? Which gives higher returns during retirement? – Telugu News | What is the difference between epf, ppf, vpf, know which scheme is better for you Pipa News

Lately everyone is thinking about retirement planning. After retirement, they are on the path of saving from the time of working without financial problems. For that, they are showing interest in investing in government guaranteed schemes. Voluntary Provident Fund (VPF), Employee Provident Fund (EVF), Public Provident Fund (PPF) are the most popular among such schemes. Each scheme has unique benefits and different terms. Each type of withdrawal rules, eligibility and risk factors have to be checked. After understanding all these it is better to invest in whichever one is best for you. In this background let’s see the complete details about VPF, PPF and EPF.

Employee Provident Fund (EPF)..

It is a mandatory retirement savings scheme for every employee. Both the employer and the employee have to pay cash on behalf of the employee. The amount of contribution is determined by the salary of the employee. Partial withdrawals are permitted. Withdrawal of the entire corpus is possible only after the retirement of the employee. This plan offers tax benefits. This scheme is a good option for retirement planning for salaried individuals.

Public Provident Fund (PPF).

This PPF helps to save taxes on the cash that comes after retirement. PPF tenure is minimum 15 years. Partial withdrawals are permitted after a specified period. Anyone who wants some flexibility in their long term savings plan can invest in it.

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Voluntary Provident Fund (VPF).

This scheme is useful if you want to make additional savings even though you are paying monthly contribution to the Employees Provident Fund. Employees can contribute larger amounts to the fund on a voluntary basis. That is, if a bonus or other excess income is received, for example, rent from property or income from mutual funds in addition to salary can be added to their retirement plan. This helps them reach their financial goals more easily. If you withdraw the money after five years, no tax will be deducted.

What is good for you?

EPP and VPF are basically the same. Every employee must invest in EPF. It also allows you to voluntarily save money in VPF. While PPF has a lock-in period, it offers flexible withdrawals.

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