What is better - EPF or PPF. If the aim is purely to save on the income tax component - and not long term benefits.

Ans: Depends on the amounts you pay for each of the deductions.

Ans: The decision to choose a higher pension through the Employees' Provident Fund (EPF) or to take the complete accumulations as a lump sum after retirement is influenced by your financial goals, risk tolerance, and personal circumstances.

Opting for Higher Pension (Annuity):
Pros:
• Provides a regular and secure source of income in retirement.
• Reduces the risk of outliving your savings.
• Offers financial stability during retirement years.
Cons:
• The pension amount might be fixed and may not keep up with inflation.
• Leaves less room for flexibility or accessing a lump sum for unforeseen expenses.

Taking Total Accumulations as a Lump Sum:
Pros:
• Provides a lump sum that can be invested or used as needed.
• Offers flexibility to manage your own investments and potentially achieve higher returns.
• Allows you to address large, immediate expenses or emergencies.
Cons:
• Requires disciplined financial management to ensure the money lasts throughout retirement.
• Carries the risk of outliving your savings if not managed wisely.

The decision should be in line with your retirement objectives. If financial stability and a steady income are your main concerns, choosing a higher pension option through EPF can be a wise decision. If you're comfortable handling your own funds, want flexibility, and have a well-thought-out retirement plan, taking the lump sum and investing it properly could bring superior returns and financial control.