The key retirement savings that employees in India look at are the Employee Provident Fund and the National Pension System.
Start early, leverage on the power of compounding, is the mantra behind a robust retirement plan. The dilemma also is on balancing the cash availability for today’s spending versus saving for the rainy future day. The salaried class, therefore, prefers schemes which have tax exemptions/ deductions which would help them reduce the cash outgo on current tax payouts. Savings for retirement are, therefore, driven by tax considerations to a great extent.
The various aspects that employees consider while deciding on investments for retirement include factors such as whether these would help them build adequate corpus, whether it would provide good returns and also whether these would be tax-efficient.
Source: Financial Express
