Retirement Plan: Select the best plan for retirement like this, keep these important things in mind...

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Retirement Planning: Every person has to take special care about his retirement. Your portfolio should be made very carefully. You can take the services of a financial advisor for fund allocation.

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Every person does his retirement planning. Two plans are preferred the most for retirement. One is the Employees' Provident Fund (EPF) and the other is the National Pension System (NPS). We will discuss the features of both here.

Both these options include saving for your retirement. Deposit a huge amount for you on retirement. PDF emphasizes the returns that are received every year.

NPS is a defined contribution scheme, where your money is invested in equity and debt markets. Its purpose is to compound your monthly contribution and convert it into a big amount till retirement so that you can get a good pension.

In NPS, you have the option you can specify how much of your money can be invested in equity. But its maximum limit is 75 per cent of the monthly contribution. In EPF, you have no control over where your money is invested. It can invest between 5 per cent to 15 per cent of the fund in equities.

If experts are to be believed, EPF being a guaranteed income works better for essential retirement expenses. At the same time, NPS is a better option for other additional expenses or pensions.

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There is a provision for tax exemption for both EPF and NPS. You can get a deduction of up to Rs 1.5 lakh from taxable income under Section 80C of the Income Tax Act, for the amount to be invested. For NPS, you can get an additional deduction of Rs 50,000 under section 80-C (1B).