Stories
EPF vs NPS: Where to get higher returns after 30 years by saving Rs 10,000 monthly?
N
News18•11-10-2026, 16:12
EPF vs NPS: Where to get higher returns after 30 years by saving Rs 10,000 monthly?
- •Saving Rs 10,000 per month for 30 years in EPF can accumulate a fund of Rs 1.57 crore based on an 8.25% interest rate.
- •NPS is market-linked and assuming a 10% average annual return, the total accumulated fund can reach approximately Rs 2.26 crore.
- •EPF offers completely safe, government-backed and guaranteed returns without market risks, making it ideal for risk-averse investors.
- •EPF allows 100% lump sum withdrawal at retirement, whereas NPS requires at least 40% of the corpus to be used for purchasing an annuity for a monthly pension.
- •Both schemes offer tax benefits under different sections, with NPS providing an additional tax exemption of Rs 50,000 under Section 80CCD(1B).
Key Questions Answered
Assuming a government-fixed interest rate of 8.25% maintained over a 30-year period, a monthly investment of Rs 10,000 in the EPF will grow to an estimated Rs 1.57 crore.
With an assumed average annual return of 10 percent linked to market performance over 30 years, a monthly investment of Rs 10,000 in the NPS can grow to approximately Rs 2.26 crore.
Under EPF, retirees get the option to withdraw 100% of their accumulated fund in a lump sum at age 58. In contrast, NPS permits a maximum lump sum withdrawal of 60%, and mandates purchasing an annuity with at least 40% of the fund to provide a lifelong monthly pension.
