For the majority of salaried employees, the task of financial planning involves more than just getting the monthly pay. Saving money, paying lower taxes and planning for future needs such as retirement is also necessary. The good thing is that there are many savings plans available provided by the government which may assist employees to do so. Below are some of the savings plans which every salaried individual should consider.

Employees’ Provident Fund (EPF)

EPF is among the popular savings plans for salaried persons. This is because a certain percentage of the salary is contributed monthly by both the employer and the employee. As a result, the plan helps in building a fund for retirement. The plan works better due to interest on the saved money.

Public Provident Fund (PPF)

PPF is one of the most popular long-term savings plans which are guaranteed by the government. It is characterized by the combination of disciplined savings and the benefits of taxation.

National Pension Scheme (NPS)

NPS is intended for individuals who wish to accumulate wealth for their retirement. The funds accumulated by the investors are invested into a number of asset classes, thus giving room for market-based returns. For instance, many salaried individuals resort to NPS for additional investments apart from the EPF.

Sukanya Samriddhi Yojana (SSY)

For individuals who have a girl child, SSY can turn out to be an effective way to save. It is aimed at facilitating saving of money for certain future needs including higher education and marriage.

National Savings Certificate (NSC)

NSC is a fixed savings scheme for those who require safety and certainty in their returns. This is a choice that is often made by the conservative investor because of its government-backed nature. This scheme can also help in the aspect of tax planning.

Senior Citizen Savings Scheme (SCSS)

Although SCSS is targeted at senior citizens, the salaried person who is getting close to his/her retirement age needs to take note of this scheme too. This scheme is an assured investment route for retirees looking for regular returns.

Importance of Diversifying Your Investment

Government schemes are good and assure you of safety and stability. However, using only one investment route is not enough in all cases. A balanced financial plan involves a combination of the two.

Plan Your Future through Effective Savings Options

There are some savings plans offered by the government that can be very useful for the planning of your finances if you are a salaried individual. These plans will be useful for various purposes such as planning for old age, tax benefits, the education of your children and many more.

Connect with Aetram if you want to create a well-balanced financial plan and make smarter investment decisions.

FAQs

1. Which government savings scheme is best for salaried employees?
The best scheme depends on individual goals, but EPF, PPF and NPS are among the most popular options.

2. Is EPF enough for retirement planning?
EPF provides a strong foundation, but many people supplement it with other retirement investments.

3. What is the difference between EPF and PPF?
EPF is linked to employment, while PPF is a voluntary savings scheme available to eligible individuals.

4. Why is NPS popular among salaried employees?
NPS helps build a retirement corpus through market-linked investments and long-term contributions.

5. Can I invest in multiple government savings schemes?
Yes, many individuals use a combination of schemes to diversify savings and meet different financial goals.