Question 1

What is the difference between NPS and EPF?

Accepted Answer

EPF is a mandatory savings scheme with a fixed interest rate (8.25%), while NPS is a voluntary market-linked pension scheme with equity and debt exposure. NPS offers an extra ₹50,000 tax deduction under Sec 80CCD(1B).

Question 2

How much pension can I get under Atal Pension Yojana (APY)?

Accepted Answer

APY offers guaranteed monthly pensions ranging from ₹1,000 to ₹5,000. Your monthly premium depends on your entry age and the pension amount chosen. It is a secure govt-backed scheme for the unorganized sector.

Question 3

How is Gratuity calculated for employees in India?

Accepted Answer

For companies covered under the Payment of Gratuity Act, the formula is: (Last Drawn Salary × 15/26) × Years of Service. You are generally eligible after 5 continuous years of service.

Question 4

What is the ideal retirement corpus for a family in India?

Accepted Answer

This depends on your current lifestyle and inflation. A common rule of thumb is to have 20-25 times your annual expenses. Use our Retirement Planner to get an inflation-adjusted target specific to your goals.

Question 5

Can I withdraw my EPF amount before retirement?

Accepted Answer

Partial withdrawals are allowed for specific reasons like marriage, education, medical emergencies, or home construction. Full withdrawal is only allowed upon retirement or after 2 months of unemployment.

Question 6

How does inflation affect my retirement planning in India?

Accepted Answer

At 6% annual inflation, ₹1 Lakh today will be worth only ₹31,000 in 20 years. Your retirement corpus must be large enough to generate returns that outpace this erosion of purchasing power.

Retirement & Savings

NPS Calculator

EPF Tool

APY Pension

Gratuity Calc

Retire Planner

Frequently Asked Questions