Retirement planning in India usually means dealing with three big acronyms: PPF, NPS, and EPF. Every financial advisor mentions them. Every article lists them. But nobody explains which one you should actually prioritize.

I'm going to change that. As someone who's now investing in all three (and made mistakes figuring it out), let me break down what each one actually does, who it's best for, and how to use them together.

EPF: The Auto-pilot Retirement Fund

If you're salaried, you're probably already investing in EPF whether you realize it or not. Each month, 12% of your basic salary goes to EPF, and your employer adds another 12%. It's automatic, forced savings.

Current interest rate: 8.15% per year Tax benefit: Completely tax-free at withdrawal (after 5 years) Lock-in: Until age 58 or retirement My take: This is the foundation. You can't opt out (if your basic salary is under ₹15,000), but honestly, you shouldn't want to.

Let me show you some real numbers. My cousin earns ₹50,000 basic salary. His and his employer's EPF contribution is ₹12,000 monthly. If he continues this till 58 (he's 30 now), with 7% annual salary increments, his EPF corpus will be approximately ₹3.2 crores. Tax-free. That's massive.

The mistake people make? Withdrawing EPF when changing jobs. My first job lasted 2 years. When I switched, I withdrew my ₹1.2 lakh EPF. Biggest financial mistake ever. If I had left it, that ₹1.2 lakhs would be worth ₹8 lakhs today (15 years of 8% compounding). Don't be me. Transfer your EPF from old employer to new employer. Always.

PPF: The Safe Haven

Public Provident Fund is the darling of conservative investors. Government-backed, guaranteed returns, completely tax-free.

Current interest rate: 7.1% per year (changes quarterly) Investment limit: ₹1.5 lakhs per year maximum Lock-in: 15 years minimum Tax benefit: EEE (Exempt-Exempt-Exempt) - no tax on investment, growth, or maturity

Here's why people love PPF: It's predictable. No market risk. No volatility. You know exactly what you'll get. If you invest ₹1.5 lakhs every year for 15 years at 7.1%, you'll have approximately ₹40.5 lakhs. Guaranteed.

But here's the catch many people miss: 7.1% sounds good until you factor in inflation. If inflation averages 6% over 15 years, your "real return" is just 1.1%. Still worth it? Maybe. It's certainly better than a savings account, and that tax-free status is valuable.

I use PPF differently. I consider it my "sleep-well-at-night" money. I invest ₹1.5 lakhs yearly (get₹46,800 tax saved in 30% bracket), and I know this money is 100% safe for my daughter's education or my own emergency needs. It's not my primary wealth creator - that's equity - but it's my safety net.

NPS: The Tax-Efficient Growth Option

National Pension System is the new kid on the block, and it's genuinely good if you understand how to use it.

Potential returns: 8-12% depending on your allocation to equity Investment limit: No limit (but tax benefit only up to ₹2 lakhs under 80CCD) Lock-in: Until age 60 Withdrawal: 60% lumpsum + 40% must buy annuity for pension

NPS lets you choose your asset allocation. You can put up to 75% in equity (depending on your age), rest in debt and government securities. This flexibility means your returns can be significantly higher than PPF or EPF.

Here's a real example: A friend contributes ₹6,000/month to NPS (₹72,000/year). With 60% equity allocation averaging 10% returns over 25 years, he'll have approximately ₹78 lakhs at 60. But here's where it gets interesting:

He gets₹18,720 tax saved annually (in 30% bracket). That's₹4.68 lakhs saved over 25 years just in taxes! When you factor in tax savings, NPS can beat EPF and PPF for wealth creation.

But the downside? At 60, he MUST use 40% (₹31 lakhs) to buy an annuity. Current annuity rates give about 6% annual income, so₹1.86 lakhs yearly or₹15,500 monthly pension. The remaining ₹47 lakhs is his to withdraw (40% tax-free, rest taxable).

The Head-to-Head Comparison

Let me put them side by side for someone investing ₹1.5 lakhs annually for 25 years:

EPF (assuming rising salary, initial ₹50k basic): Corpus: ₹2-3 crores Tax on withdrawal: NIL Liquidity: Partial withdrawals possible, loans available Control: None - fixed returns

PPF: Corpus: ₹1.02 crores Tax on withdrawal: NIL Liquidity: Partial withdrawals from year 7, loan from year 3 Control: None - fixed returns

NPS (60% equity allocation): Corpus: ₹1.05 crores Tax on withdrawal: 40% tax-free, 40% to annuity, 20% taxable Liquidity: Almost none till 60 Control: High - you choose asset allocation

Wait, EPF wins by a huge margin! Yes, but remember - EPF depends on your salary. If you're self-employed or in a lower-paying job, EPF won't be this large. For most people, the decision is about what to do BEYOND EPF.

Who Should Choose What?

You're 25-35, comfortable with some risk: EPF (mandatory) + NPS (₹50k-1L/year) + Equity SIPs The NPS gives you tax benefits, equity SIPs give you higher growth, EPF gives you guaranteed base.

You're 35-45, moderate risk appetite: EPF (mandatory) + PPF (₹1.5L/year) + NPS (₹50k/year) Split between PPF for safety and NPS for slightly better growth with tax benefits.

You're 45+, conservative: EPF (mandatory) + PPF (₹1.5L/year) + FD/Debt funds Prioritize capital protection. Your risk-taking years are behind you.

You're self-employed: PPF (₹1.5L/year) + NPS (₹50k/year minimum) + Equity investments Since you don't have EPF, PPF becomes critical for guaranteed returns. NPS adds tax-efficient growth.

The Hybrid Strategy (What I Actually Do)

I don't choose one. I use all three strategically:

EPF: I let my mandatory contributions accumulate. Never withdraw. Will have₹2+ crores by 60 (hopefully).

PPF: I maximize at ₹1.5L/year. This is my "safe bucket" - tax-free, guaranteed, perfect for emergencies or daughter's education.

NPS: I invest an additional ₹50k/year beyond EPF/PPF limits for that extra ₹50k deduction under 80CCD(1B). Gets me ₹15,600 tax saving annually (31% bracket including cess).

Beyond these: ₹15k/month in equity SIPs for real wealth creation. EPF/PPF/NPS are safety + tax efficiency. Equity is growth.

Total annual retirement investing: Approximately ₹5 lakhs (EPF contribution included). Is it a lot? Yes. But retirement isn't optional, and I want to retire comfortably, not struggle.

The Mistakes I Made (So You Don't Have To)

Withdrawing EPF early: Lost lakhs in compounding. Biggest mistake ever.

Ignoring NPS initially: Didn't understand it, so avoided it. Lost out on 5 years of tax-efficient growth.

Starting PPF late: Started at 33 instead of 25. Those 8 years would have added ₹18 lakhs to my PPF corpus.

Not increasing contributions with salary: For 3 years, I kept investing the same amounts despite 30% salary growth. Missed opportunity to accelerate wealth building.

Thinking "I'll start next year": I waited for the "right time" to max out my PPF. There's never a right time. Just start.

Your Action Plan

Stop overthinking. Here's what to do:

This month:

• Check your EPF balance (on EPFO portal)
• Open PPF if you haven't (any post office or bank)
• Research NPS (NPS Trust website or any bank)

This quarter:

• Ensure EPF is transferring to new employer (if you changed jobs)
• Deposit₹50k in PPF
• Open NPS account with ₹50k

This year:

• Max out PPF to ₹1.5L before March 31
• Ensure NPS contribution reaches at least ₹50k
• Never touch EPF when changing jobs

You don't need to choose between PPF, NPS, and EPF. Use them together. Each serves a purpose. Together, they form a solid retirement foundation.

Your 60-year-old self is counting on you to start today. Don't let them down.