Planning Your Golden Years: PPF vs. NPS - Which is Your Retirement Dream

Safety vs. Growth: PPF offers guaranteed returns, like a safe savings account. NPS invests in the market, so returns can be higher but are not guaranteed.

Lock-in Period: PPF locks your money for 15 years, with partial withdrawals after a certain period. NPS limits withdrawals till retirement (age 60), with some exceptions.

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Tax Benefits: Both offer tax benefits on contributions and earned interest. NPS offers additional tax deductions.

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Who Can Invest?: Anyone can open a PPF account. NPS is mainly for salaried employees, though self-employed can now join.

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Investment Limits: PPF has a yearly investment limit. NPS allows you to contribute as much as you want (within limits set by your income).

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Risk Tolerance: PPF is ideal for risk-averse investors. NPS suits those comfortable with some market risk for potentially higher returns.

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Maturity Benefits: Upon maturity, you get your PPF principal amount and accumulated interest. NPS offers a mix of lump sum and pension payments.

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Flexibility: PPF allows partial withdrawals after a lock-in period. NPS offers limited withdrawal options before retirement.

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Who Manages It?: PPF is managed by the government. NPS investment choices are managed by professional fund managers.

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Retirement Goals: PPF is good for a fixed retirement corpus. NPS can provide a regular income stream alongside a lump sum.

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