The Nation Pension System or NPS is a retirement scheme run by the Government of India. Where by investing you can get away from retirement worries. According to tax experts, if a person invests 12 thousand rupees a month in NPS, then he can get a pension of Rs 1.78 lakh after retirement. For this, that person will have to choose the option of Systematic Withdrawal Plan. Let us understand this whole thing in a little detail –
Speaking on the NPS scheme, Sebi Registered Tax and Investment Expert Jitendra Solanki says, “An NPS subscriber can choose to have equity exposure up to 75 per cent. However, such people who like to take less risk, it would be better if they choose 60 percent equity and 40 percent debt exposure. If he does this then in the long run, the return on NPS investment can be up to 10%. Solanki explains that if an investor makes a churning investment of Rs 12,000 at 60:40 ratio and buys an annuity plan of 40% of the maturity amount, he will get Rs 1,64,11,142. If only 6 percent interest is assumed on the annuity plan, then you will get a monthly pension of Rs 54,704.
In such a situation, the question is that if someone invests Rs 1.64 crore in a systematic withdrawal plan, then how much money will he get per month. Responding to this question Pankaj Mathpal, MD & CEO, Optima Money Managers says, “Investment of Rs 1.64 crore in a systematic withdrawal plan for 25 years will yield Rs 1,23,560 lakh per month. If we consider 8 per cent interest.
Follow this strategy for pension of 1.76 lakh monthsÂ
If you want a monthly pension of Rs 1.70 lakh, then for that you have to choose the option of investing 50 percent equity and 50 debt in the NPS account for 30 years. This is for NPS investments of Rs 12,000 per month or Rs 400 per day. Then the investor will get Rs 1.02 lakh from systematic withdrawal plan and Rs 68,330 from annuity return.
Whereas for a monthly pension of Rs 1.78 lakh, the investor will have to keep 40 percent of the annuity plan in the monthly investment of Rs 12,000. Then from the Systematic Withdrawal plan, Rs 1.23 lakh and Rs 54,704 will be available per month. That is, 1.78 lakh rupees will be available.
