Raise your equity allocation to beat retirement blues, say experts

Keep in mind risk appetite and investment horizon permit

The government recently approved a 40-year low interest rate of 8.1 per cent on Employees’ Provident Fund (EPF) for 2021-22. This will also be the first year when taxation of interest income from contributions above Rs 2.5 lakh kicks in. The return offered by Public Provident Fund (PPF) has also been declining — from 8 per cent in 2018-2019 to present-day 7.1 per cent.

One-year returns from National Pension System (NPS) schemes — both equity and debt — have also shrunk.

All these developments have left investors worried about their retirement savings.

Experts, however, say investors should focus on the long term and