NPS vs PPF vs EPF: Which Retirement Plan Is Best in 2026?

NPS, PPF and EPF are three of India's most popular retirement vehicles — but they work very differently. Here's how to choose.

EPF (Employees' Provident Fund)

Automatic for salaried employees: you and your employer each contribute 12% of basic + DA. It's low-risk, currently earns 8.25%, and builds a solid retirement corpus. Project yours with the EPF Calculator.

PPF (Public Provident Fund)

Open to everyone, government-backed, 15-year lock-in, currently 7.1%, and fully tax-free (EEE). Great for safe, tax-free savings up to ₹1.5 lakh/year under 80C. See the PPF Calculator.

NPS (National Pension System)

Market-linked (equity + debt), so potentially higher returns with more risk. At 60 you take up to 60% tax-free and use at least 40% to buy a pension annuity. It also offers an extra ₹50,000 tax deduction under 80CCD(1B). Estimate your pension with the NPS Calculator.

Quick comparison

• Risk: PPF & EPF (low) → NPS (moderate, market-linked)
• Returns: EPF ~8.25%, PPF ~7.1% (fixed); NPS market-linked (often higher)
• Lock-in: PPF 15 yrs; EPF/NPS until retirement
• Tax: All offer 80C/80CCD benefits; PPF is fully tax-free; NPS gives an extra ₹50k deduction

The smart move

Many people use all three — EPF runs automatically, PPF adds safe tax-free growth, and NPS boosts returns plus an extra tax break. Also compare with a SIP in mutual funds. Estimates only — not investment advice.