Tensai Sensei

Introduction The National Pension System is a great financial product for creating your retirement kitty. With contribution of just ₹5000 per month, you can accumulate more than a crore! I am a NPS subscriber (through NSDL eNPS) myself. If you have read my previous post  regarding EPF you know I like NPS for the following reasons. 60 year lock-in period Additional tax exemption under section 80CCD (1B) Choice of various assets classes Choice of pension fund managers Option to change your asset allocation or pension fund manager Low cost of fund management Transparency & organization structure Good customer support Online account opening and management Multiple exit options at retirement Screenshot from  Pension Calculator | NPS Trust Some Not So Great Things NPS is...

Like every employee who joins a company in the organized sector, I too was forced to open an account under the Employee Provident Fund scheme. So far I've had a pretty bad experience with the scheme. Over the years I have faced lots of issues with it. This post started as an investigation on EPF. It started more like weekend project to check if EPF still has value in today's day and age where employees are financially educated and better retirement products exists. Let's start from the beginning... What is EPF? 🤔 The Employee Provident Fund (EPF) is a scheme that helps people save up a sufficient corpus for retirement. The plan was introduced with the Employees' Provident Funds Act in 1952 and is today managed by the Employees' Provident Fund Organisation (EPFO). Source:  ETMoney As per the law, every employee has to put 12% of their salary (=Basic Salary + Dearness Allowance) in their EPF account every m...