Long-term retirement plan
-
Does NPS always make sense for retirement savings given its tax advantages and flexibility, particularly when compared to PPF and EPF as income increases, and what are the effects of early closure on withdrawals and returns?
-
NPS is good for long-term retirement plans as it offers market-linked returns and tax advantages, which makes it a more beneficial option than PPF or EPF as your income goes up.
If you exit NPS before the age of 60, it affects your money. In this situation, you can take out only 20% as cash, which is taxable, and the remaining 80% as annuitizing, which ultimately impacts your overall returns.