National Pension Scheme: If your wife does not want to be dependent on anyone for money in the future, then you can arrange for a regular income for her. You can open a New Pension System (NPS) account in the name of your wife. The NPS account will give a lump sum amount to your wife at the age of 60. Apart from this, you will get the benefit of pension every month. This will be the wife’s regular income. The biggest benefit of NPS Account is that you can decide yourself how much pension you want every month. Your wife will not be short of money at the age of 60.
Open an NPS account in your wife’s name
You can open a New Pension System (National Pension Scheme) account in your wife’s name. You get the option of depositing money every month or annually as per your convenience. You can open an NPS account in your wife’s name even with Rs 1,000. The NPS account matures at the age of 60. Under the new rules, if you want, you can continue running the NPS account till your wife reaches the age of 65. ₹5000 monthly investment will create a fund of ₹1.14 crore
Understand this with an example- Your wife is 30 years old and you invest ₹5000 every month in her NPS account. If she gets 10% annual return on investment, then at the age of 60, she will have a total of ₹1.12 crore in her account. She will get around ₹45 lakh from this. Apart from this, she will start getting pension of around ₹45,000 every month. She will keep getting this pension for life.
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How much lump sum amount and pension will be received
Age- 30 years Total investment period- 30 years Monthly contribution- ₹5,000 Estimated return on investment- 10% Total pension fund- ₹1,11,98,471 can be withdrawn on maturity. ₹44,79,388 amount to buy annuity plan. Rs 67,19,083 Estimated annuity rate 8% Monthly pension – Rs 44,793.
Fund managers do account management
NPS is the social security scheme of the central government. The money you invest in this scheme is managed by professional fund managers. The central government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS is completely safe. However, the return on the money you invest under this scheme is not guaranteed. According to financial planners, NPS has given an average return of 10 to 11 percent annually since its inception.
Additional tax exemption is available
Tax exemption benefits are also available in the National Pension System (NPS) such as tax exemption of up to Rs 2 lakh and tax exemption on withdrawal of 60% of the amount. NPS is such a scheme in which after the limit of Rs 1.5 lakh is exhausted, tax exemption is also available on additional investment of Rs 50 thousand. Due to this extra exemption, you can save a total tax of up to Rs 2 lakh every year in NPS.
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