Last Updated:September 23, 2025, 18:32 IST

The EPFO offers 8.25% annual compound interest, while SIPs are market-linked with higher potential returns but also risk. Proper planning ensures a secure retirement

The key benefit of EPF investments is that up to Rs 1.50 lakh is tax exempt per financial year. (Representative/Shutterstock)

As the concern for retirement looms large over every employed individual, the question of financial security post-retirement is a pressing one. Without a job, expenses remain unchanged, and relying solely on the Employees’ Provident Fund (EPF) may not suffice.

Here’s how individuals can prepare for old age while still working:

What Is EPF?

The Employees’ Provident Fund (EPF), managed by the EPFO, is a retirement investment plan where employees contribute up to 12% of their basic salary and DA monthly. Employers match this contribution, with a minimum of Rs 1,800 and a maximum of 12% of the employee’s basic salary and DA.

Of this 12 percent, 8.33 percent goes to the EPF, while the remaining 3.67 percent is allocated to the Employees’ Pension Fund (EPS), which provides a monthly pension upon retirement.

The EPFO offers an annual compound interest rate of 8.25 percent on these contributions. Employees also have the option to exceed the 12 percent contribution limit, with the excess amount being credited to the Voluntary Provident Fund (VPF). The key benefit of EPF investments is that up to Rs 1.50 lakh is tax exempt per financial year under Section 80C of the Income Tax Act, 1961, and the interest earned and maturity amount are tax-free.

EPF falls under the exempt-exempt-exempt (EEE) category. However, in VPF, tax exemption applies only up to 12 percent of the basic salary and DA, with returns on contributions above this amount being taxable. Given these significant tax benefits, experts often recommend investing up to the 12 percent limit.

Understanding SIP

Another investment option to consider is a Systematic Investment Plan (SIP) in mutual funds. SIPs allow individuals to invest a predetermined amount daily, monthly, quarterly, or annually. The investment amount can be increased annually through top-up SIPs. SIPs offer rupee-cost averaging, where the net asset value (NAV) fluctuates with market conditions.

When the market is high, fewer SIPs are purchased, but the investment value increases; when the market is low, more NAVs are acquired, but the investment value decreases. Additionally, SIP investments benefit from compounded growth, allowing investments to grow exponentially over time.

Investors who prefer smaller, regular contributions over lump sum investments often choose SIPs.

EPS vs SIP: How To Reach Rs 1.5 Crore Target Faster

Comparing EPF and SIP, if one aims to reach a retirement goal of Rs 1.50 crore, it’s essential to note that EPF offers guaranteed returns in the form of interest, whereas SIP is market-linked with potentially higher returns but also risks of negative returns if the market falls.

Since the exact returns of a SIP are uncertain, a standard 12% return is assumed for calculation purposes.

If one starts contributing at the age of 25, continuing until 60, EPF will require a monthly investment of Rs 6,350 to achieve a corpus of Rs 1.50 crore, yielding Rs 1,50,29,133.18 after 35 years.

Conversely, with SIPs, a monthly investment of Rs 6,350 starting at age 25 can reach the Rs 1.50 crore goal in 27 years, with an investment amount of Rs 20,57,400 and long-term capital gains of Rs 1,34,15,875, totalling Rs 1,54,73,275.

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New Delhi: The Association of Healthcare Providers of India (AHPI) and Star Health and Allied Insurance Company on Sunday announced that cashless services will resume at AHPI member hospitals from October 10. In a joint statement, both organisations said they will work to resolve all remaining issues — including tariff revisions — by October 31, 2025.

The agreement follows weeks of negotiations after AHPI had earlier issued an advisory urging its members to suspend cashless facilities from September 22 in protest over pricing and other concerns. With the resolution, AHPI has revoked that advisory and confirmed efforts are underway to settle other pending matters within the next month.

To prevent similar disputes in future, AHPI plans to create a panel of industry leaders to work with insurers on an industry-level agreement that keeps patient interests at the forefront. “We are pleased that our dialogue with Star Health Insurance has resulted in this positive outcome,” said Dr. Girdhar Gyani, Director General of AHPI. “The restoration of cashless services will ease the burden on patients and their families, who deserve uninterrupted access to care.”

Anand Roy, MD & CEO of Star Health Insurance, echoed the sentiment: “At Star Health Insurance, our foremost priority is the well-being of our policyholders. We are glad to have resolved the issues through constructive engagement with AHPI. Restoring cashless services at member hospitals reflects our commitment to ensuring accessible, affordable, and seamless healthcare for our customers.”

The suspension of cashless services had caused significant disruption for patients at several major hospitals. Among the affected facilities were Care Hospitals (Ramnagar, Vizag), Manipal Hospitals (Delhi and Gurugram), Max Hospitals (North India), Metro Hospital (Faridabad), Medanta Hospital (Lucknow), Rajiv Gandhi Cancer Hospital (New Delhi), Sarvodaya Hospital (Faridabad), and Yatharth Hospitals. AHPI had earlier criticised the suspension as “arbitrary” and warned of patient distress.

With cashless services now set to resume, both AHPI and Star Health say they are committed to a more collaborative, patient-centric approach to healthcare delivery and insurance settlement going forward.

Jaguar Land Rover (JLR) has confirmed that production in its factories will remain suspended until next month at the earliest.

The business secretary and industry minister are visiting JLR on Tuesday for the first time since the cyber attack to meet with the company and firms in the beleaguered carmaker’s supply chain.

The company has been unable to produce cars since the cyber attack at the end of August forced it to shut down its IT networks, and fears are growing that the company’s suppliers could go bust without support.

JLR has confirmed that its factories – including its UK facilities in Solihull, Halewood and Wolverhampton – won’t resume operations until at least October 1.

“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open,” JLR said in a statement confirming the shutdown extension.

“We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”

Sources previously told the BBC the disruption could last into November.

Industry minister Chris McDonald said he was visiting JLR alongside Business Secretary Peter Kyle to “host companies in the supply chain, to listen to workers and hear how we can support them and help get production back online.”

He said in a statement: “We have two priorities, helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain.

“We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the government is on their side.”

Suppliers are anxious to be heard, according to Johnathan Dudley, the head of manufacturing for accounting and consulting firm Crowe UK. The firm is based in the West Midlands, which is where the Solihull and Wolverhampton plants are.

“Obviously, they’re being very, very cautious because they don’t want to create panic, and equally, they don’t want to be seen to be criticising people further up the chain,” he told BBC Radio 4’s Today programme.

“It’s not a blame game, but it is a cry for help, because there are businesses now seeing people not paying [staff].”

The halt in production had hit profits by about £120m already, and £1.7bn in lost revenue, according to David Bailey, Professor of Business Economics at the University of Birmingham.

JLR is currently taking the lead on support for its own supply chain, rather than any state intervention.

One of the country’s largest trade unions, Unite, called for a furlough scheme for staff of JLR suppliers, after reporting that some workers were being told to apply for Universal Credit.

Unite said staff were being laid off with “reduced or zero pay” following the hack, which has forced the carmaker to shut down its IT networks and halt production.