National Pension System Benefits- NPS is a great plan to create a large corpus for the future and get pension after retirement. Investment can be started with at least 500 rupees.
New Delhi. If you also want to be financially independent after retirement, then you should invest in the National Pension System (NPS). NPS not only helps in building a huge retirement fund but also provides a handsome monthly pension after retirement. If investment is made in this wisely, then a pension of 50 thousand rupees per month can also be obtained, that too by investing only 200 rupees daily. NPS was launched in January 2004 for government employees. In the year 2009, it was opened for all classes.
Regular contributions can be made to NPS during the working age. After this, a part of the accumulated amount can be withdrawn at the age of 60 and regular pension can be received from the remaining amount. Investing in NPS gives the benefit of deduction under section 80C, whose limit is Rs 1.5 lakh. The National Pension System comes under the “EEE” category. Investing in it gives tax benefit. Also, the return and maturity amount are also completely tax free.
It is necessary to take 40 percent annuity in NPS. According to the new rules, no person can withdraw the entire fund on maturity. It is necessary to buy annuity from 40 percent of the fund. Pension is given after retirement from this annuity. The remaining 60 percent of the fund can be withdrawn outright. A person can also buy annuity from 40% of the fund. Higher the annuity, higher will be the monthly pension.
2.5 crore fund will have to be made
It is necessary to have an NPS fund of Rs 2.5 crore for 40 per cent annuity purchase for a monthly pension of Rs 50,000. If you open an NPS account at the age of 24 and invest 6 thousand rupees every month till retirement, then by the age of 60 you will have a fund of 2.5 crores. You have to deposit regular money in NPS till the age of 60 years. In this way you will invest in it for 36 years. Your principal amount will be Rs.2,55,2000. If 10% return is assumed on the amount deposited in NPS, then its total corpus value will be Rs 2,54,50,906.
This is how you will get 50 thousand monthly pension
If you buy 40% annuity out of the total fund after depositing money for 60 years, then this amount will be Rs 1,01,80,362. That is, you have to keep this much amount in the account. On this you will get at least 6 lakh rupees interest annually. In this way you will start getting pension of Rs 50,000 every month.
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