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Retirement Planning

Not one product — a system. EPF, PPF, NPS, mutual funds, insurance and a few underused options, mapped to where you actually are in your career.

Start Here

How Much Do You Actually Need?

A quick estimate using the "25x annual expense" rule of thumb — adjust the assumptions as you like.

Default assumes retiring at 60 and planning income up to roughly age 85 — adjust for your own life expectancy expectations.
Estimated Corpus Needed
₹0
Monthly Expense at Retirement
₹0
Years to Retirement
0

The "25x" rule assumes a ~4% annual withdrawal rate. Given India's historically higher and less predictable inflation, some planners suggest targeting 30x for extra safety — that would be roughly ₹0 instead. This is a starting estimate, not a guarantee.

Your Roadmap

What To Prioritise, By Life Stage

General guidance for a typical Indian middle-class career — not personalised advice for your specific situation.

22–30
JUST STARTED
Build the Habit
Priority Moves
  • Let EPF run untouched if salaried
  • Open a PPF account — even ₹2,000/month
  • Start NPS Tier I early for the 80CCD(1B) habit
  • Equity mutual fund SIP — time is your biggest asset now
Rough Mix
~70% growth (equity MF/NPS) · ~30% safety (PPF/EPF)
30–45
BUILDING YEARS
Increase & Protect
Priority Moves
  • Step up SIPs as income grows
  • Max the ₹50,000 NPS 80CCD(1B) benefit if in the old regime
  • Buy pure term insurance now — it's cheapest while you're younger
  • Track EPF + NPS corpus growth yearly
Rough Mix
~60% growth · ~30% safety · ~10% protection (insurance)
45–55
CONSOLIDATION
Start De-Risking
Priority Moves
  • Gradually shift some equity to debt/hybrid funds
  • Let NPS Auto Choice glide equity down automatically
  • Review health insurance cover — medical inflation bites hardest here
  • Start estimating your real retirement corpus gap
Rough Mix
~45% growth · ~40% safety · ~15% protection
55+
PRE/POST RETIREMENT
Convert to Income
Priority Moves
  • SCSS at 60+ for 8.2% guaranteed, payable quarterly
  • POMIS for a predictable monthly cheque
  • Plan the NPS annuity vs lump-sum split carefully — see below
  • Keep 2–3 years of expenses in something liquid, not locked
Rough Mix
~20% growth · ~60% safety/income · ~20% liquid buffer
The Big Picture

Safety vs Growth, At a Glance

Where each option roughly sits — most Indian middle-class portfolios end up blending three or four of these, not picking just one.

← Growth Potential → ← Capital Safety →
The Numbers

Government-Backed Options, Compared

Rates shown are for Jul–Sep 2026 (Q2 FY 2026–27) and EPF FY 2025–26 — these are revised quarterly/annually by the government.

SchemeCurrent RateLock-inTax TreatmentBest For
EPF8.25% p.a.Till retirement/job changeTax-free after 5 yrs serviceSalaried employees
PPF7.1% p.a.15 yearsEEE — fully tax-free, 80CEveryone, incl. self-employed
NPSMarket-linked (not guaranteed)Till 60 (can extend to 75)80CCD(1)+(1B)+(2), see belowLong-term growth + extra 80CCD(1B) saving
SCSS8.2% p.a. (max ₹30L)5 years80C eligible, interest taxableSenior citizens (60+)
POMIS7.4% p.a.5 yearsNo 80C, interest taxablePredictable monthly income
NSC7.7% p.a.5 years80C eligibleConservative savers
KVP7.5% p.a. (~9y7m to double)~115 monthsNo 80CSimple "money doubles" savers
Post Office FD (5yr)7.5% p.a.5 years80C eligible (5-yr only)Fixed-return seekers
Equity Mutual Funds / SIPMarket-linked, not guaranteedNone (ELSS: 3 yrs)ELSS gets 80C; LTCG rules applyLong-horizon compounding
Annuity / Pension PlansTypically ~5–7% p.a.Locked for life once boughtPurchase exempt, payouts taxableGuaranteed income for life
Worth Understanding Properly

Four Pieces People Get Wrong

NPS's New 80% Withdrawal Rule

Since December 2025, PFRDA lets non-government subscribers with a corpus above ₹12 lakh withdraw up to 80% as a lump sum (only 20% must go to annuity, down from the old 40%). Corpus under ₹8 lakh can be withdrawn 100%.

The catch: Income tax law still only exempts 60% of the lump sum under Section 10(12A). The extra 20% between 60–80% may be taxable until tax rules formally catch up — don't assume the whole 80% is tax-free.

NPS's Three Different Tax Sections

NPS tax benefit isn't one number — it's three: 80CCD(1) (your contribution, within the ₹1.5L 80C cap), 80CCD(1B) (an extra ₹50,000, NPS-exclusive), and 80CCD(2) (employer's contribution, up to 14% of salary).

Regime matters: 80CCD(1) and 80CCD(1B) only work under the old tax regime. 80CCD(2) — the employer contribution — works under both regimes.

Health Insurance Isn't Optional Here

Medical inflation in India regularly runs well ahead of general inflation. A retirement plan that skips adequate health cover can get wiped out by a single hospitalisation, regardless of how well the rest of the corpus was built.

Review and top up health cover in your 40s and 50s specifically — premiums rise with age, so locking in cover earlier is usually cheaper long-term. See our Health Insurance page.

Two Underused Income Sources

Senior Citizen FDs — banks typically pay 0.25–0.75% more than standard FD rates for 60+ depositors, on top of SCSS.

Reverse Mortgage — lets homeowners 60+ convert home equity into a regular income stream without selling or moving out. Rarely used in India, but worth knowing about if a large share of net worth is tied up in property.

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A note on accuracy: Interest rates for government-backed schemes (PPF, SCSS, POMIS, NSC, KVP, Post Office FD) reflect the Ministry of Finance notification for Jul–Sep 2026 (Q2 FY 2026-27) and are revised every quarter — check the current rate before investing. EPF rate reflects the EPFO/Ministry of Labour notification for FY 2025-26. NPS and mutual fund figures are market-linked and not guaranteed — past performance does not indicate future returns.

This page is educational, not personalised financial advice. Allocation percentages by life stage are general starting points for discussion, not a recommendation tailored to your income, dependents, existing assets, or risk appetite. Mutual Fund investments are subject to market risks — read all scheme related documents carefully. Please consult a SEBI-registered Investment Adviser or a qualified financial planner before making decisions.