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Early start, more equity can beat low interest rates, say analysts

Counter the cut in EPF rate with an asset-allocated retirement portfolio and using instruments like NPS

Provident fund, PF
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Sarbajeet K Sen
In the current low interest rate environment, the government recently reduced the guaranteed return on the Employees’ Provident Fund (EPF) to 8.1 per cent, a multi-decade low.

The move has come as a dampener to those who rely on the state-sponsored scheme for their retirement corpus.

However, early starters, who follow a disciplined financial plan, can still end up with a sizeable retirement corpus.

Estimate the corpus required

Your current cost of living can provide a good estimate of your cost of living at the time of retirement.

“Inflate today’s living costs till retirement age. From this inflated cost, reduce

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First Published: Mar 30 2022 | 6:05 AM IST

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