Making retirement plans in India for salaried individuals might feel far off, but starting early can make a huge difference. In India, smart long-term investors usually pick EPF, NPS, and PPF. All three options are backed by the government of India to build a safe and tax-efficient retirement fund.
A common objective for many is to build a ₹5 Crore retirement corpus using monthly SIP-style investments. But how do you get there using these three tools together? Let’s break it down in simple words How to Invest in EPF NPS PPF Monthly to Reach ₹5 Crore Retirement Corpus in India.
Why EPF, NPS, and PPF Are Great for Retirement
If you are searching for something with low risk to grow your money steadily, then EPF, NPS, and PPF are excellent choices. Here’s why:
EPF (Employees’ Provident Fund):
It is best for salaried employees looking to save for retirement in India, especially if your basic pay scale is up to ₹15,000 per month. But even above that, your employers provide EPF, you and your employer pitch in every month, and the interest earned is tax-free.
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Current interest rate: 8.25% for FY 2024-25
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Tax benefit: Under Section 80C
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This fund provides safe and fixed returns.
Learn more from this official EPFO resource.
NPS (National Pension System)
NPS is open for all Indians who are aged 18 to 70 years old. It invests in equity, corporate debt, and government bonds. In this process, returns are based on market performance but balanced.
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Average return: 8 to 10%
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Tax benefits: Extra ₹50,000 under Section 80CCD(1B)
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This fund provides higher growth for equity risk
For detailed scheme features and fund manager choices, visit the National Pension System Trust website.
PPF (Public Provident Fund)
PPF is a 15-year savings plan, which is offered by the Government of India. It is suitable for investors who are willing to take some market risks. You can even extend it in 5-year blocks.
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Current interest rate: 7.1% as per July 2025
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Tax benefit: EEE (Exempt-Exempt-Exempt)
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It is a fully secure and tax-free retirement investment option
How to Invest in EPF NPS PPF Monthly to Reach ₹5 Crore
Let’s look at a practical EPF NPS PPF investment strategy if you are in your late 20s or early 30s, which gives you around 30 years to retire. Here is how you can spread your monthly investment smartly:
1. EPF Contribution – ₹6,000 per month
If your basic pay is ₹50,000, then you contribute 12% of your salary, which is ₹6,000 and your employer contributes a similar amount.
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Total monthly contribution: ₹12,000
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30-year value at 8.25% interest rate: approx. ₹1.75 Crore
Your EPF grows faster because of the power of compounding and employer contributions.
2. NPS Investment – ₹10,000 per month
NPS lets you invest more in equity, that is up to 75%, which means better long-term returns.
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Expected return: 9% per year
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30-year value: approx. ₹1.8 Crore
You even get an extra tax relief of ₹50,000 per year under Section 80C.
3. PPF Contribution – ₹12,500 per month
This type of fund is the maximum allowed under PPF, which is up to ₹1.5 lakh per year. Although it runs for 15 years, you can keep renewing it.
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Interest rate: 7.1%
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30-year value: approx. ₹1.25 Crore
Although PPF has a fixed return, it adds stability to your overall financial plan for retirement.
Your Combined Retirement Corpus
If you stay invested in this EPF NPS PPF combined retirement plan and avoid early withdrawals, then:
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EPF: ₹1.75 Crore
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NPS: ₹1.8 Crore
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PPF: ₹1.25 Crore
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Total: ~₹4.8 Crore
That is very close to your ₹5 Crore retirement corpus goal and you can link the small gap with bonuses, increments, or even extra top-ups.
Smart Tips to Reach ₹5 Crore Faster
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Increase your investments every year, because even a 5 to 10% increase in your income per year can add lakhs over time.
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Use Section 80C for EPF and PPF and Section 80CCD(1B) for NPS to maximise your tax benefits.
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Open an NPS Tier 2 account to get access to flexible withdrawals if you ever need funds before retirement.
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Try to avoid early withdrawals and let your EPF and PPF stay untouched to enjoy the power of compounding.
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Monitor and rebalance your portfolio by keeping an eye on performance and switch fund managers if needed for NPS.
Tax Benefits Breakdown
| Investment | Tax Benefit | Maturity Tax | Notes |
|---|---|---|---|
| EPF | Up to ₹1.5 lakh under Section 80C | Tax-free if kept for 5+ years | Employer’s 12% support is tax-free |
| NPS | Up to ₹1.5 lakh under Section 80C + ₹50,000 under Section 80CCD(1B) | 60% lump sum tax-free at the time of retirement | Annuity income comes with tax |
| PPF | Up to ₹1.5 lakh under Section 80C | Fully tax-free | Comes under EEE status |
Should You Use All Three?
Here is why using all three at once for retirement ₹5 crore corpus can be a smart option:
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EPF gives stable and fixed growth over time.
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NPS brings returns related to the market with higher long-term potential.
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PPF provides security and tax-free returns.
Using all three at once helps balance growth, safety, and tax savings. You won’t have to depend on just one type of return.
Final Thoughts
Building a ₹5 Crore retirement corpus in India is definitely possible if you start as soon as possible and stay regular with it for the long term. Use EPF, NPS, and PPF wisely, try to increase your investment with an increase in your income, and don’t take it out early.
FAQs
How much should I invest monthly in PPF, NPS, and PPF?
You should aim for ₹6,000 to ₹12,000 in EPF, ₹10,000+ in NPS, and ₹12,500 in PPF every month for the next 25 to 30 years.
Can I change my NPS contribution later?
Yes. NPS is adjustable, in which you can increase and reduce your contributions anytime.
Is EPF maturity tax-free?
If you have worked for at least 5 years without taking a break, then EPF maturity is tax-free.
Can I extend PPF beyond 15 years?
Yes, you can increase it in a 5-year block for as long as you want.
Which is better for retirement – NPS or PPF?
A mix of both are very useful. NPS offers higher returns due to equity, whereas PPF is safe and tax-free.