NPS vs EPF: Projected retirement corpuses on Rs 12,500 per month investment? Get calculations

NPS is a retirement scheme, where one can contribute once in a financial year or monthly from the age of 18 years to 75 years. It has Tier I and Tier II accounts. 

The NPS accountholder gets a lump sum amount of up to 60 per cent of their corpus at the retirement age of 60 years. The rest, 40 per cent, is used to purchase annuity for a monthly pension. 

In EPF, the employee and the employer contribute monthly to the employee's EPF account. 

The employer's contribution also goes to the employee's pension account (EPS). An employee can contribute up to a maximum 12 per cent of their basic salary and dearness allowance (DA) to their EPF account. 

Deposits up to Rs 1.50 lakh in a financial year in EPF provides tax benefits under Section 80C of the Income Tax Act.  

In NPS, if you get a 10 per cent return on your Rs 12,500/month contribution for 30 years, your retirement corpus will be Rs 2,84,91,567.

If you get a 12 per cent return, it will be Rs 4,41,23,923.

Since EPF provides 8.25 per cent interest, a Rs 12,500 monthly contribution for 30 years will give you Rs 1,92,59,490.07 as the retirement corpus.