NPS, Public Provident Fund (PPF), PMVVY Or Senior Citizen Savings Scheme (SCSS): Which One To Invest In?
National Pension System (NPS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Public Provident Fund (PPF) and Senior Citizen Savings Scheme (SCSS) are some of the tools available today for earning a pension after your retirement. Retirement planning is often neglected by individuals. For something as inevitable as retirement, planning well in advance leads to a steady flow of income during post-retirement years, say financial planners. But which one to pick from the various instruments focused on retirement available today? Is an annuity plan better than investing in a pension scheme? Investors may look at the best suited option based on requirement, investment period and the ability to absorb volatility, say experts. (Also read: How To Invest In Atal Pension Scheme (APY) To Earn Pension of Rs 5,000 Per Month)
In an annuity plan, you pay a lump sum and start receiving regular income for life or a pre-defined fixed period. A pension plan, on the other hand, provides you with the opportunity to accumulate your savings in the years towards retirement.