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

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