I have recently joined an organization I have heard that many people are not opting for EPF option because of its low rate of return as compared to other investment alternatives. Is it wise to opt out of EPF?
EPF is optional at the starting stage of career. One, calculate the returns of the other investment alternatives after taxation. Two, if you opt not to contribute 12% of your basic salary towards EPF then you will stand to lose 12% equal contribution from your employer. If you look at long term gains, then I think you should choose to contribute.